Oakmark Funds, advised by Harris Associates, released its “Oakmark Global Select Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned -4.96% in the quarter compared to a -0.16% return for the MSCI World Index (net). The fund generated 7.37% since its inception, compared to the index’s 7.61% return over the same period. The largest contributing sectors were communication services and financials, 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 Select Fund highlighted stocks like The Charles Schwab Corporation (NYSE:SCHW) in the fourth quarter 2024 investor letter. The Charles Schwab Corporation (NYSE:SCHW) is a savings and loan holding company that offers wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The one-month return of The Charles Schwab Corporation (NYSE:SCHW) was 0.05%, and its shares gained 17.44% of their value over the last 52 weeks. On January 15, 2025, The Charles Schwab Corporation (NYSE:SCHW) stock closed at $73.66 per share with a market capitalization of $134.839 billion.
Oakmark Global Select Fund stated the following regarding The Charles Schwab Corporation (NYSE:SCHW) in its Q4 2024 investor letter:
“The Charles Schwab Corporation (NYSE:SCHW) is a leading provider of brokerage services, with more than $9 trillion in client assets spread across over 35 million active brokerage accounts. As the largest discount brokerage platform, Schwab has meaningful scale advantages, which the company uses to reinvest in providing the best service quality and pricing in the industry. These customer-friendly investments attract even more clients to its platform, furthering a virtuous cycle that has enabled Schwab to gain share of U.S. investible assets for more than four decades. In recent years, this underlying growth has been masked by short-term headwinds as high rates have incentivized clients to shift cash from Schwab bank into higher yielding alternatives. Schwab has had to rely on more expensive funding to replace these deposits, pressuring earnings per share. We view this as a temporary headwind. Over time, we expect Schwab’s strong underlying business growth will drive growth in its deposits and a rebound in earnings per share. The current concerns provided the opportunity to establish a position at a discount to the market for a business that is well above average, in our view.”
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The Charles Schwab Corporation (NYSE:SCHW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 74 hedge fund portfolios held The Charles Schwab Corporation (NYSE:SCHW) at the end of the third quarter which was 72 in the previous quarter. The third quarter revenue of The Charles Schwab Corporation (NYSE:SCHW) increased 5% year-over-year to $4.8 billion. While we acknowledge the potential of The Charles Schwab Corporation (NYSE:SCHW) 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 The Charles Schwab Corporation (NYSE:SCHW) and shared the list of best financial services stocks to buy according to analysts. 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.