In this article we will list Value Investor Oldfield Partners’ Top 10 Stocks Picks.
Investors, in general, follow herd mentality, causing share prices to drop too low after bad news and rise too high after good news, a tendency further amplified by momentum investing. However, Oldfield Partners LLP, a boutique, owner-managed fund management firm, believes that price discrepancies generated through hyped up news about a certain theme could easily distract investors from finding potential bargains – lowly valued stocks, trading at a healthy discount to their intrinsic worth.
Oldfield Partners was founded in November 2004 by Richard Oldfield. Richard holds a BA (Hons) in History from Oxford University and authored the investing book Simple but not Easy, published in 2007. He has a distinguished career in investment management and governance with his tenure at Oxford University Investment Committee and Oxford University Endowment Management Ltd as Chairman from 2007 to 2014. He is also a director of Witan Investment Trust plc and a trustee for both the Royal Marsden Cancer Charity and Canterbury Cathedral Trust.
Oldfield Partners serves a global clientele, including endowments, pensions, charities, and family offices. Oldfield Partners employs a value investing strategy with a focused, diversified portfolio, no leverage, and a long-term approach. It employs several distinct strategies: Global Equity, EAFE, Global Equity Income, Global Small cap and Emerging Markets (including EM ex China) through separate accounts or a variety of pooled funds.
An example of Oldfield Partners’ contrarian investment philosophy is that of South Africa where political and economic crises can create opportunities to purchase quality assets at significant discounts. However, the country’s structural issues, driven by poor policymaking, weakened institutions, corruption, and a hostile business environment, make the potential for high returns from low valuations less certain. Over the past decade, South African capital markets have underperformed, with negative total dollar returns compared to the S&P’s annualized return of over 12%. The recent elections in May further disrupted the political status quo, adding to the uncertainty.
Opportunity drives Oldfield Partners’ investment strategy, which is why their Emerging Market Fund includes a single Russian investment—Lukoil, a low-cost oil and gas producer. Before the war, the rationale for investing in the stock was its production of a globally traded, dollar-denominated commodity, making it less susceptible to Russia’s domestic economy. Since the war, however, the stock has impacted the fund’s performance, though it remains one of the better “performers.” Over the past three years, while the MSCI Emerging Markets Index has declined by 17%, the oil and gas producer has risen by 62%. Despite this, sanctions have made it impossible for foreign institutions to trade its shares on the Moscow Exchange, forcing the fund to hold them at a “nil value” (zero). The shares remain in custody with dividends still accruing, and the fund continues to seek a legal exit strategy.
Oldfield Partners currently sees more attractive bottom-up investment opportunities in other emerging markets. Although the emerging markets are still generally improving, they make strong valuation targets. While the firm avoids making short-term predictions, their bottom-up valuation models indicate that the fund’s holdings remain appealing, both in absolute terms and relative to other opportunities.
Our Methodology
Stocks mentioned in this article were picked from the investment portfolio of Hosking Partners at the end of the second quarter of 2024. In order to provide readers with a more comprehensive overview of the companies, the analyst ratings for each firm are mentioned alongside other details. A database of around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2024 was used to quantify the popularity of each stock in the hedge fund universe.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here)
10 Best Stocks to Buy According to Value Investor Oldfield Partners
10. Compañía de Minas Buenaventura S.A.A. (NYSE:BVN)
Oldfield Partners’ Stake Value: $10,095,759
Percentage of Oldfield Partners’ 13F Portfolio: 1.9%
Number of Hedge Fund Holders: 10
Compañía de Minas Buenaventura S.A.A. (NYSE:BVN) is a Peruvian precious metals company engaged in the mining and exploration of gold, silver and other metals. Its EBITDA from direct operations increased by $85 million, in the second quarter, compared to the previous year, driven by strong results from Yumpag and El Brocal. Cerro Verde announced a new $300 million dividend, with $59 million to be distributed. This is expected to bolster financial performance by the end of August. Q2 CapEx totaled $84 million, primarily allocated to the San Gabriel project, while the cash position reached $172 million, with a total debt of $682 million. Compañía de Minas Buenaventura S.A.A. (NYSE:BVN) expects to achieve the lowest net debt-to-EBITDA ratio in years of 1.4 times.
All-in sustaining costs dropped by 91% year-over-year, largely due to increased silver output from Uchucchacua and Yumpag, and reduced production at El Brocal. Copper costs increased due to the El Brocal suspension, while silver costs decreased due to higher contributions from Uchucchacua and Yumpag. Gold costs rose due to lower grades at Tambomayo and Orcopampa. Looking ahead, Buenaventura is focused on the San Gabriel project, which reached 57% completion by Q2 2024.
9. Infosys Limited (NYSE:INFY)
Oldfield Partners’ Stake Value: $10,244,687
Percentage of Oldfield Partners’ 13F Portfolio: 1.93%
Number of Hedge Fund Holders: 25
Infosys Limited (NYSE:INFY) is an Indian multinational IT and consulting services company, headquartered in Bengaluru, India, with operations spanning 50 countries. In Q1 2025, Infosys witnessed its revenues grow 3.6% sequentially and 2.5% year-on-year in constant currency terms, driven by strong performance across all geographies and industry groups. Notably, the financial services segment saw a 7.9% growth, particularly in North America. Infosys Limited (NYSE:INFY) secured 34 large deals, totaling $4.1 billion in contract value, reflecting its position as a preferred partner for consolidation and efficiency programs. Operating margins improved by 1% sequentially, with free cash flow reaching a record $1.1 billion.
Infosys Limited (NYSE:INFY)’s investments in generative AI, particularly through their Topaz platform, are gaining strong traction with clients. It is partnering with a telecommunications leader to enhance product engineering with AI and working with a leading bank to modernize IT infrastructure using AI. It has launched Aster, an AI-powered marketing suite, and continues to train its global workforce in AI-first skills, with over 270,000 employees now equipped to deliver AI-powered solutions.
Infosys has raised its revenue growth guidance for the full financial year to 3%-4% in constant currency due to strong performance and outlook, while maintaining operating margin guidance at 20%-22%. Infosys Limited (NYSE:INFY) has closed the acquisition of in-tech, which will further enhance its capabilities in the engineering sector. With a robust pipeline and ongoing investments in AI and cloud services, it is well-positioned for continued growth.
8. Embraer S.A. (NYSE:ERJ)
Oldfield Partners’ Stake Value: $14,404,604
Percentage of Oldfield Partners’ 13F Portfolio: 2.72%
Number of Hedge Fund Holders: 29
Embraer S.A. (NYSE:ERJ) designs, develops, manufactures, and sells aircraft and systems. Embraer recorded its first firm orders from NetJets, with deliveries starting in 2025, and a total of 250 aircraft expected over the next 14 years. Additionally, Embraer (NYSE:ERJ) signed an MoU with Mahindra to pursue the sale of the C-390 Millennium to the Indian Air Force.
Although the division’s revenue declined year-over-year due to supply chain delays and seasonality, Services & Support saw a 12% revenue growth and maintained a record $3.1 billion backlog. The division also began ramping up GTF 1100 engine induction at its Portuguese MRO, expecting revenues to reach $500 million by 2028. EVE, Embraer’s urban air mobility venture, is on track to achieve key milestones in 2024, including the completion of its first prototype and Urban Air Traffic Management trials.
Embraer (NYSE:ERJ) delivered 18 executive jets in Q1, a 125% increase from the previous year, and maintained a strong backlog of $21.1 billion, the highest in seven years. The company reported $900 million in Q1 revenue, a 25% growth year-over-year, driven by strong performance in Executive Aviation and Services & Support. However, Defense & Security and Commercial Aviation faced challenges due to supply chain issues and limited deliveries. The company recorded $47 million in adjusted EBITDA, though adjusted net income was negative at $13 million, reflecting typical first-quarter seasonality. Despite these challenges, Embraer reduced its gross debt by $276 million in Q1 and remains in a strong liquidity position.
7. Middleby Corporation (NASDAQ:MIDD)
Oldfield Partners’ Stake Value: $40,171,450
Percentage of Oldfield Partners’ 13F Portfolio: 7.59%
Number of Hedge Fund Holders: 35
Middleby Corporation (NASDAQ:MIDD) is a specialty industrial equipment company that caters to the needs of the food and food services industry. It generated $992 million in revenue for Q2, a 7% sequential increase from Q1, with an adjusted EBITDA of $216 million (22% margin) driven by margin expansion in its commercial foodservice and food processing segments. Although the residential segment experienced a 6.7% organic revenue decline its margins improved from Q1, despite challenges in the housing market.
Middleby Corporation (NASDAQ:MIDD) achieved record operating cash flow for both Q2 and the first half of 2024, benefiting from normalized cash flows post-supply chain disruptions and reduced leverage over the past year. Despite lower Q2 revenues compared to the prior year, order trends were positive across all business segments. The commercial foodservice segment experienced a gradual increase in orders, though challenges like longer permitting times and economic pressures slowed the pace. The food processing business remains strong, with a pipeline of projects driven by customer needs for automation, labor reduction, and sustainability.
The residential segment continues to face difficulties due to the sluggish housing market, but luxury market improvements and new product launches are expected to support a gradual recovery. Despite cautious customer behavior, improved order conversions were noted in Q2. Looking ahead, Middleby expects sequential revenue growth across all segments in the second half of 2024, with the potential for year-over-year increases, particularly in food processing. Middleby Corporation (NASDAQ:MIDD) anticipates continued strength in order trends and improved financial performance as the year progresses.
6. Walt Disney Company (NYSE:DIS)
Oldfield Partners’ Stake Value: $51,293,214
Percentage of Oldfield Partners’ 13F Portfolio: 9.69%
Number of Hedge Fund Holders: 29
In Q3, Walt Disney Company (NYSE:DIS) saw a 2% increase in revenue, driven by the strong appeal of its intellectual property (IP) in its parks, which continues to attract visitors. Although there was a slight decrease in demand, it was not significant. The Experiences division is divided between domestic parks and international ventures, with domestic parks and cruise ships making up 60% of operating income. Attendance remained steady, with a slight increase in per capita spending. For Q4, revenue from parks is expected to be flat, with some expenses related to cruise ships affecting results in 2024 and 2025. However, the entertainment sector, including upcoming releases like “Moana 2” and “Mufasa,” is expected to offset this slowdown.
Disney’s (NYSE:DIS) new NBA deal, which begins in a year, secures valuable sports programming for ESPN, including long-term access to the finals and international rights, which is anticipated to drive significant revenue. The deal also supports ESPN’s shift to digital platforms, with future growth expected from new advertising and distribution opportunities.
Disney (NYSE:DIS) has received 183 Emmy nominations for shows like “Shogun” and “The Bear,” and its film lineup continues to perform well. The success of its IP across Disney, Fox, Hulu, and other platforms is driving increased consumption and pricing power. The company is optimistic about future growth, bolstered by a strong advertising market and the addition of features like improved recommendation engines and new programming.
Disney’s advertising revenue grew by 8% overall, with ESPN up 17% and DTC streaming up 20%. The ad market remains robust, benefiting from live sports and strong streaming content. Disney’s new capability, Disney Streaming, enhances audience targeting for advertisers. While Disney continues its licensing strategy selectively, the primary focus remains on producing and monetizing its own IP.
5. Southwest Airlines Co. (NYSE:LUV)
Oldfield Partners’ Stake Value: $54,218,811
Percentage of Oldfield Partners’ 13F Portfolio: 10.24%
Number of Hedge Fund Holders: 21
Southwest Airlines Co. (NYSE:LUV) is a major global airline facing recent financial challenges, including a significant stock decline and reduced profit margins over the past four years. Despite these pressures, Southwest maintains strong operational performance, achieving a completion factor of 99.5% even amid adverse weather conditions. For instance, after Hurricane Beryl, the airline recovered swiftly from an 8% cancelation rate to only 0.3% the next day.
Revenue for the quarter Q2 2024 saw a 3.8% year-over-year decline, largely due to an oversupply of domestic capacity and challenges with a new revenue management system. To address these issues, Southwest is implementing strategic changes, including moving from an open seating to an assigned seating model based on customer preferences and competitive pressure. This transition aims to enhance revenue and operational efficiency while retaining key elements of the Southwest experience.
Additionally, Southwest Airlines Co. (NYSE:LUV) is adjusting its fleet and capacity strategies, including reducing aircraft deliveries and optimizing schedules to better align supply with demand. The airline’s capital expenditures for 2024 are projected to be around $2.5 billion, lower than earlier expectations, and it is focused on maintaining a strong balance sheet with significant liquidity.
Looking ahead, Southwest Airlines Co. (NYSE:LUV) plans to continue its strategic transformation, improve revenue management, and enhance operational efficiency. The company remains committed to delivering strong financial performance and shareholder returns, with detailed plans to be shared at their Investor Day in September.
4. Berkshire Hathaway Inc. (NYSE:BRK.A)
Oldfield Partners’ Stake Value: $62,910,400
Percentage of Oldfield Partners’ 13F Portfolio: 11.88%
Number of Hedge Fund Holders: 137
Berkshire Hathaway Inc. (NYSE:BRK.A) is a multinational conglomerate with a wide range of holdings in industries such as insurance, railroads, utilities, and consumer goods. Renowned for its long-term value investing approach, the company’s stock portfolio and wholly-owned subsidiaries play a significant role in its substantial financial strength.
Berkshire Hathaway Inc. (NYSE:BRK.A) is the world’s most profitable insurance company, earning $3.6 billion in underwriting profits for the 2023 fiscal year. Its portfolio includes major brands like Geico, Duracell, Dairy Queen, BNSF, and Fruit of the Loom. Berkshire Hathaway’s core insurance operations generate significant investable cash, which Warren Buffett uses to achieve impressive returns.
In addition to its diverse business holdings, Berkshire Hathaway boasts a substantial investment portfolio valued at $332 billion as of March 31. The company also has a record cash reserve of $189 billion, positioning it well for significant acquisitions. Recently, it used part of its cash to repurchase $2.6 billion worth of its own shares in Q1.
3. SS&C Technologies Holdings, Inc. (NASDAQ:SSNC)
Oldfield Partners’ Stake Value: $68,711,388
Percentage of Oldfield Partners’ 13F Portfolio: 12.98%
Number of Hedge Fund Holders: 50
SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) enables businesses to manage their financial, office, and other business functions. For Q2 2024, SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) reported adjusted revenue of $1.452 billion, exceeding forecasts by $20 million and reflecting a 6.5% increase with notable advancements in alternative fund administration and wealth and investment technology.
Adjusted diluted earnings per share rose 17.6% to $1.27, and adjusted EBITDA was $558.9 million with a margin of 38.5%, up 170 basis points. Organic revenue growth was 6.4%, driven by strong performance in alternatives, GIDS, wealth and investment technology, and Intralinks. The GIDS business saw an unexpected boost due to seasonality and accelerated license revenue.
Cash from operations increased 16.8% to $385 million, and the cash flow conversion rate was over 120%. The company reduced debt by $25.2 million, lowering its net leverage ratio to 2.84 times consolidated EBITDA. SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) bought back 3.7 million shares for $227 million, marking the highest quarterly buyback in its history. The board has approved a new $1 billion stock repurchase program.
2. Arrow Electronics, Inc. (NYSE:ARW)
Oldfield Partners’ Stake Value: $69,183,404
Percentage of Oldfield Partners’ 13F Portfolio: 13.07%
Number of Hedge Fund Holders: 39
Arrow Electronics, Inc. (NYSE:ARW) is the world’s largest authorized electronics components distributor (15% market share including larger shares in key markets) serving both electronics OEM customers and component suppliers.
In the second quarter, Arrow Electronics (NYSE:ARW) performed strongly despite ongoing market fluctuations and an extended inventory correction in the electronics supply chain. The company reported revenues of $6.9 billion and non-GAAP earnings per share of $2.78, both exceeding guidance. The Global Components segment outperformed expectations, and while the broader market remains uneven, there are signs of gradual improvement.
Revenue grew sequentially in Asia, driven by increased sales in semiconductors and IP&E, particularly in China. In the Americas, aerospace and defense sectors remained robust, though overall revenue slightly declined. EMEA experienced continued declines in industrial and transportation markets, with Europe being the last to enter correction phases.
Arrow’s Global ECS business exceeded expectations, benefiting from strong cloud and AI-related demand, despite some softness in data storage. The company’s strategic shift towards multi-year subscriptions and recurring revenue streams is fostering deeper client relationships and increasing backlog.
1. Chubb Limited (NYSE:CB)
Oldfield Partners’ Stake Value: $95,323,396
Percentage of Oldfield Partners’ 13F Portfolio: 18.01%
Number of Hedge Fund Holders: 59
Chubb Limited (NYSE:CB) is a major insurance provider that offers homeowners insurance through its personal property and casualty division. While its broad portfolio helps mitigate risks, Chubb faces challenges in sectors like agriculture and has exposure to both U.S. and international property markets. This diversification allows Chubb to benefit from high premiums and lower catastrophe payouts in some regions, even if U.S. payouts are higher. The company also leverages increased premiums across various sectors for investment income. However, its large scale requires maintaining substantial reserves to ensure liquidity in the event of significant disruptions.
Chubb Limited (NYSE:CB)’s shared insights on the impact of catastrophe on its property division during its Q2 2024 earnings call:
“Our middle market P&C business grew at 11%. Our E&S business grew at 8.7%. Our large-account business grew a little slower clip. Our financial line shrank, while P&C grew. I’ve gone through that where rates achieve a risk-adjusted return from everything we can tell, that we contemplate achieving, we’re growing that business as fast as we can. Where it’s not achieving it, we’re striving to achieve it. Where we can’t earn an underwriting profit, we’re shrinking. Where it’s adequate, we’re growing as fast as we can. And we have the capital, the depth of balance sheet and an appetite and knowledge and geographic reach and the distribution brand, the underwriting capability to grow in those areas where we want to grow.
And there are times we’ll trade rate for growth and we’ll — there are times we’ll trade growth for rate. We’re doing both. And when it comes to the current accident year combined ratio, I’ve said before and I’ve written this, it’s very interesting about the industry’s current accident year combined ratio ex-cat. Property is a much larger part and a growing — everybody is more cat-levered because of the changes in the [reinsurance] (ph) market, the rates and terms. And we take the cat loss out of the numerator, but in the denominator, we leave all the premium, that naturally drives down our current accident year combined ratio in mix of business all else being equal. So, it’s — I look — that’s a part and parcel of the published combined ratio, which is the primary number that everyone should look at.
And the current accident year to look through volatility is a secondary indicator. And that’s how I think of about. And I think what we published of an 86.8%, which has higher cat losses than prior quarter — prior year’s quarter because volatility in property is simply an outstanding number. I hope that answers your question. This is a company with big appetite and — but a big appetite and an ambition to grow when we can earn a reasonable return.”
While we acknowledge the potential of CB as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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