Oakmark Funds, advised by Harris Associates, released its “Oakmark Equity and Income Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund delivered -0.20% during the quarter compared to the Lipper Balanced Fund Index’s -1.24% return. The equity portfolio returned 1.28% in the quarter, compared to 2.41% for the S&P 500 Index. The fixed-income portfolio returned -2.25% compared to -3.06% for the Bloomberg U.S. Aggregate Bond Index. The fund has allocated 59.3% in equities, 39.5% in fixed income, and 1.2% in cash. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Oakmark Equity and Income Fund highlighted stocks like Alphabet Inc. (NASDAQ:GOOGL) in the fourth quarter 2024 investor letter. Alphabet Inc. (NASDAQ:GOOGL), the parent company of Google, offers various platforms and services operating through Google Services, Google Cloud, and Other Bets segments. The one-month return of Alphabet Inc. (NASDAQ:GOOGL) was 0.67%, and its shares gained 34.06% of their value over the last 52 weeks. On January 14, 2025, Alphabet Inc. (NASDAQ:GOOGL) stock closed at $189.66 per share with a market capitalization of $2.329 trillion.
Oakmark Equity and Income Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its Q4 2024 investor letter:
“Alphabet Inc. (NASDAQ:GOOGL) was the top contributor during the quarter. Despite ongoing litigation with the Department of Justice in its antitrust case, the U.S.-headquartered interactive media and services company’s stock price rose after posting solid third-quarter earnings. In the Search division, the company generated low-teens year-over-year revenue growth and management highlighted that they’re seeing strong user engagement with their new AI Overviews feature. The biggest upside surprise came from the Cloud division, where revenue growth accelerated to 35% and margins reached a record of 17%. This performance was driven by client demand for AI Infrastructure and Generative AI Solutions as well as core Google Cloud Platform (GCP) products. We continue to believe Alphabet is a collection of great businesses that can unlock further value over the long term through its world-class AI capabilities.”
A user’s hands typing a search query into a Google Search box, emphasizing the company’s search capabilities.
Alphabet Inc. (NASDAQ:GOOGL) is in 4th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 202 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOGL) at the end of the third quarter which was 216 in the previous quarter. While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOGL) 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 as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Alphabet Inc. (NASDAQ:GOOGL) and shared the list of best machine learning stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.