Oakmark Funds, an investment management company, released its “Oakmark Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund generated a 10.3% return compared to a 7.6% return for the S&P 500 Index. During the year 2022, the fund returned -13.4% compared to the -18.1% return for the S&P 500 Index. Every sector in which the fund invested contributed positively to the fund’s performance in the quarter. The financials and energy sectors were the largest contributors. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Oakmark Funds highlighted stocks like Adobe Inc. (NASDAQ:ADBE) in its Q4 2022 investor letter. Headquartered in San Jose, California, Adobe Inc. (NASDAQ:ADBE) is a global software company. On January 9, 2023, Adobe Inc. (NASDAQ:ADBE) stock closed at $341.98 per share. One-month return of Adobe Inc. (NASDAQ:ADBE) was 1.13%, and its shares lost 34.96% of their value over the last 52 weeks. Adobe Inc. (NASDAQ:ADBE) has a market capitalization of $158.987 billion.
Oakmark Funds made the following comment about Adobe Inc. (NASDAQ:ADBE) in its Q4 2022 investor letter:
“We invested in Adobe Inc. (NASDAQ:ADBE) after the stock traded near a three-year low in the wake of the announcement that it would acquire Figma, a complementary design software vendor, for $20 billion. Despite the market’s fears related to this transaction, we believe that Adobe is a fast-growing, high-margin business that continues to possess enduring competitive advantages. Its Creative Cloud is the de facto standard for both professionals and students, and its Acrobat products are used to read and create billions of PDF documents every year. After a successful transition from selling licenses to cloud-based subscriptions, Adobe has grown free cash flow per share at an 18% annual rate for the past decade. Adobe trades for approximately the same multiple of next year’s free cash flow as the S&P 500, but we believe it deserves a substantial premium.”
Adobe, software
Adobe Inc. (NASDAQ:ADBE) is in 22nd position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 93 hedge fund portfolios held Adobe Inc. (NASDAQ:ADBE) at the end of the third quarter, which was 92 in the previous quarter.
We discussed Adobe Inc. (NASDAQ:ADBE) in another article and shared the most valuable silicon valley companies in the world. In addition, please check out our hedge fund investor letters Q4 2022 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.
