Oakmark Funds, advised by Harris Associates, released its “Oakmark Global Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned -5.78% in the quarter compared to a -0.16% return for the MSCI World Index (net). The fund generated a 9.01% return since its inception compared to the index’s 6.35% return over the same period. The largest contributors at the sector level were financials and communication services, while the largest detractors were health care and consumer discretionary. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Oakmark Global Fund highlighted stocks like Capital One Financial Corporation (NYSE:COF), in the fourth quarter 2024 investor letter. Capital One Financial Corporation (NYSE:COF) is a financial services holding company for the Capital One, National Association that offers various financial products and services. The one-month return of Capital One Financial Corporation (NYSE:COF) was 5.89%, and its shares gained 46.51% of their value over the last 52 weeks. On January 14, 2025, Capital One Financial Corporation (NYSE:COF) stock closed at $184.72 per share with a market capitalization of $70.421 billion.
Oakmark Global Fund stated the following regarding Capital One Financial Corporation (NYSE:COF) in its Q4 2024 investor letter:
“Capital One Financial Corporation (NYSE:COF) was the top contributor during the quarter. The U.S.-headquartered consumer finance company’s stock price rose after posting good third-quarter results. In our view, the update seemed to be marginally positive on all fronts, with loans and card purchase volumes growing modestly. In addition, an improved credit outlook caused management to release $134 million of loss reserves in the quarter, which contributed to earnings per share that exceeded consensus expectations. Furthermore, Capital One’s stock price got a significant boost in November following the U.S. presidential election as investors are optimistic that the financials sector will benefit from looser regulations. Specific to Capital One, the market now appears to believe that there is a greater probability of the merger with Discover closing and that the creditcard late fee cap proposed by the Consumer Financial Protection Bureau seems less likely to be implemented. We appreciate management’s focus on creating long-term value and think the stock offers an attractive upside.”
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Capital One Financial Corporation (NYSE:COF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 67 hedge fund portfolios held Capital One Financial Corporation (NYSE:COF) at the end of the third quarter which was 65 in the previous quarter. While we acknowledge the potential of Capital One Financial Corporation (NYSE:COF) 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 Capital One Financial Corporation (NYSE:COF) and shared Warren Buffett’s new stock picks. 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.