Oakmark Funds, advised by Harris Associates, released its “Oakmark Global Fund” first quarter 2024 investor letter. A copy of the same can be downloaded here. The fund returned 4.35% in the quarter compared to an 8.88% Return for the MSCI World Index (net). The fund generated an average of 9.38% per year since its inception in August 1999, outperforming the index’s 6.18% return over the same period. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Oakmark Global Fund featured stocks like Centene Corporation (NYSE:CNC) in the first quarter 2024 investor letter. Headquartered in St. Louis, Missouri, Centene Corporation (NYSE:CNC) is a healthcare enterprise. On April 5, 2024, Centene Corporation (NYSE:CNC) stock closed at $72.78 per share. One-month return of Centene Corporation (NYSE:CNC) was -6.73%, and its shares gained 9.74% of their value over the last 52 weeks. Centene Corporation (NYSE:CNC) has a market capitalization of $38.93 billion.
Oakmark Global Fund stated the following regarding Centene Corporation (NYSE:CNC) in its first quarter 2024 investor letter:
“Centene Corporation (NYSE:CNC) is a large health insurer specializing in three major government-sponsored programs: Medicaid, Marketplace and Medicare Advantage. Each of these programs benefits from long-term secular tailwinds. In Medicaid, states are steadily outsourcing their programs to managed care companies like Centene to help reduce costs and improve care quality. Managed Medicaid penetration has increased meaningfully over the past two decades, and we expect further gains over time. In Marketplace, growth is driven by the trend toward more individuals buying health insurance. Centene holds the top market share in both of these programs and is well-positioned to capitalize on their continued growth. Finally, in Centene’s Medicare Advantage business, past missteps will result in losses next year, but we believe Centene can turn its Medicare Advantage segment around and generate positive earnings in the next few years. Centene currently trades for about 9x our estimate of normal earnings power, which we believe is a compelling value for a business that generates healthy returns on capital and is capable of growing EPS at a low double-digit rate.”
A doctor holding a clipboard in a hospital ward, discussing patient treatment plan with the nurses.
Centene Corporation (NYSE:CNC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Centene Corporation (NYSE:CNC) was held by 57 hedge fund portfolios, compared to 53 in the previous quarter, according to our database.
We discussed Centene Corporation (NYSE:CNC) in another article and shared the list of largest insurance companies in the US by assets in 2024. In addition, please check out our hedge fund investor letters Q1 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.
