Oakmark Funds, advised by Harris Associates, released its “Oakmark Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned 2.04% in the fourth quarter, compared to a 2.41% return for the S&P 500 Index. The fund has returned 12.82% since its inception compared to the index return of 10.67% over the same period. The largest contributors to the fund for the quarter were financials and communication services while health care and materials detracted. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Oakmark Fund highlighted stocks like The Carlyle Group Inc. (NASDAQ:CG) in the fourth quarter 2024 investor letter. The Carlyle Group Inc. (NASDAQ:CG) is an investment firm that focuses on direct and fund of fund investments. The one-month return of The Carlyle Group Inc. (NASDAQ:CG) was 5.82%, and its shares gained 34.21% of their value over the last 52 weeks. On January 14, 2025, The Carlyle Group Inc. (NASDAQ:CG) stock closed at $51.82 per share with a market capitalization of $18.54 billion.
Oakmark Fund stated the following regarding The Carlyle Group Inc. (NASDAQ:CG) in its Q4 2024 investor letter:
“The Carlyle Group Inc. (NASDAQ:CG) is one of the largest global alternative asset managers and is particularly well regarded for its private equity franchise. Compared to peers, the firm over-indexes to private equity, which is considered to be a relatively mature industry vertical, and under-indexes to faster growing verticals like private credit. This has caused Carlyle’s share price to lag its competitors. However, we believe Carlyle’s new management team is taking the right steps to continue expanding the firm’s platform beyond its private equity roots and see this as an opportunity to accelerate organic growth. Further, we believe Carlyle’s brand and distribution capabilities position the firm well for growth in the retail channel, where allocations to alternatives are expected to expand significantly in the coming years. Despite the firm’s attractive and improving outlook, Carlyle trades at less than half the P/E multiple of its peer group and at a substantial discount to other financial services companies with a comparable growth profile.”
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The Carlyle Group Inc. (NASDAQ:CG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held The Carlyle Group Inc. (NASDAQ:CG) at the end of the third quarter which was 23 in the previous quarter. While we acknowledge the potential of The Carlyle Group Inc. (NASDAQ:CG) 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 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.