Oakmark Funds, advised by Harris Associates, released its “Oakmark Select Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned 6.01% in the fourth quarter compared to a 2.41% return for the S&P 500 Index. The fund returned 11.88% since its inception compared to the index’s return of 9.82% over the same period. The largest contributing sectors were financials and communication services while the health care and energy sectors detracted. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Oakmark Select Fund highlighted stocks like Paycom Software, Inc. (NYSE:PAYC) in the Q4 2024 investor letter. Paycom Software, Inc. (NYSE:PAYC) is a cloud-based human capital management solution provider. The one-month return of Paycom Software, Inc. (NYSE:PAYC) was -2.97%, and its shares gained 5.76% of their value over the last 52 weeks. On January 14, 2025, Paycom Software, Inc. (NYSE:PAYC) stock closed at $203.26 per share with a market capitalization of $11.36 billion.
Oakmark Select Fund stated the following regarding Paycom Software, Inc. (NYSE:PAYC) in its Q4 2024 investor letter:
“Paycom Software, Inc. (NYSE:PAYC) was the top contributor during the quarter. The U.S.-headquartered human resources and employment services company’s stock price rose after reporting solid earnings and revenue growth acceleration in the third quarter. The company is growing at a double-digit rate, and its fourth-quarter guidance suggests management believes it can sustain that level of growth even with a headwind from lower interest income. Paycom’s margins were strong during the quarter and the company is tracking for 27% GAAP operating margins in 2024. We see Paycom as a cloud leader in payroll and believe the company has a long runway for future growth with the opportunity to take market share from legacy players.”
A close-up of two software engineers typing away at laptops in a modern, well-lit office.
Paycom Software, Inc. (NYSE:PAYC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Paycom Software, Inc. (NYSE:PAYC) at the end of the third quarter which was 32 in the previous quarter. In the third quarter, Paycom Software, Inc. (NYSE:PAYC) reported $452 million in revenues, increased 11% year-over-year. While we acknowledge the potential of Paycom Software, Inc. (NYSE:PAYC) 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 Paycom Software, Inc. (NYSE:PAYC) and shared Wells Fargo’s top growth stocks and the stocks with the highest consensus EPS growth estimates. 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.