Browse the world's most comprehensive database of hedge fund investor letters, sorted by recent quarter. Access primary source research from leading institutional managers.
| Quarter | Letter Date | Fund Name | QTD | YTD | Tickers | Themes | Quick Take |
|---|---|---|---|---|---|---|---|
Buyside Digest is not affiliated with, and does not endorse, Oakmark Fund. This analysis is provided for institutional research purposes only and is not investment advice.
"Oakmark Fund pivoted from growth back to traditional value investing, eliminating positions like Adobe and Netflix while adding five new holdings including Baxter, Carlisle, and First Citizens BancShares. Despite value underperforming growth by 2400 basis points, managers found attractively priced companies trading at low multiples of normalized earnings power."
The Oakmark Fund returned 8.6% in Q2 2023, slightly underperforming the S&P 500's 8.7% but outperforming year-to-date with 17.4% versus 16.9%. The fund faced significant headwinds as growth stocks outperformed value by 2400 basis points, reversing last year's value recovery. In response, managers eliminated five growth-oriented positions including Adobe, Uber, Take-Two Interactive and Netflix that were added during last year's sell-off. They replaced these with five new traditional value investments trading at attractive multiples of normalized earnings. Key new positions include Baxter International (medical devices at less than 10x normalized earnings), Carlisle Companies (commercial roofing at 12x next year's EPS), Celanese (specialty chemicals at single-digit normalized multiple), First Citizens BancShares (regional bank at discount to tangible book value), and IQVIA (healthcare technology at less than 15x normal earnings). The managers believe these companies face temporary headwinds but offer compelling long-term value as conditions normalize.
Sign in or create a free account to unlock full commentary, extracted equity pitches, and direct outbound manager source links with your 3 quarterly credits.
