Oakmark Funds, advised by Harris Associates, released its “Oakmark Global Select Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. For the fiscal year ended September 30, 2023, the fund returned 27.70% outperforming the MSCI World Index’s 21.95% return (net). The fund delivered -1.92% in the recent quarter compared to the benchmark’s -3.46% return. Since its inception on October 2, 2006, the fund delivered an average of 7.13% per year. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Oakmark Global Select Fund highlighted stocks like CNH Industrial N.V. (NYSE:CNHI) in the third quarter 2023 investor letter. Headquartered in London, the United Kingdom, CNH Industrial N.V. (NYSE:CNHI) is an equipment and services company that operates through the Agriculture, Construction, and Financial Services segments. On October 9, 2023, CNH Industrial N.V. (NYSE:CNHI) stock closed at $11.86 per share. One-month return of CNH Industrial N.V. (NYSE:CNHI) was -12.28%, and its shares gained 1.80% of their value over the last 52 weeks. CNH Industrial N.V. (NYSE:CNHI) has a market capitalization of $15.779 billion.
Oakmark Global Select Fund made the following comment about CNH Industrial N.V. (NYSE:CNHI) in its Q3 2023 investor letter:
“CNH Industrial N.V. (NYSE:CNHI) (Italy), which designs, manufactures, and distributes agricultural and construction equipment, was the top detractor for the quarter. CNH Industrial’s share price fell following its second-quarter results, as agriculture equipment sales rose 5% in local currency, a slowdown from the prior quarter. This performance fell below market expectations due to destocking activity in Brazil and some production ramp-up issues for its new Patriot sprayer. We believe the production issues are temporary while the destocking actions will better position the business for the midterm. Pricing power remains quite strong and increased by roughly 7%, and precision agricultural sales grew by 21%. While the market was overly focused on near-term demand and sales growth, the agriculture equipment division produced its highest quarterly margin ever at 16.8%—an encouraging development that supports our view of the company’s long-term profitability. Further, the much smaller construction business delivered strong results, including its own quarterly margin record. Management maintained guidance for the rest of the company’s current fiscal year and indicated it expects to exceed the 2024 targets laid out at a capital markets day in 2022. We recently met with CEO Scott Wine at the company’s offices. He expressed confidence in the company’s ability to drive much better through-cycle financial performance while avoiding the company’s previous mistakes. He also believes the company’s share price is materially undervalued, and although he would prefer to invest in the business, he sees an opportunity to increase returns to shareholders via share repurchases. We believe CNH Industrial remains a solid business in an attractive industry that is run by a much-improved management team.”
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CNH Industrial N.V. (NYSE:CNHI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held CNH Industrial N.V. (NYSE:CNHI) at the end of the second quarter, which was 35 in the previous quarter.
We discussed CNH Industrial N.V. (NYSE:CNHI) in another article and shared the list of AI and robotics companies transforming the agriculture sector. In addition, please check out our hedge fund investor letters Q3 2023 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.
