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 GE HealthCare Technologies Inc. (NASDAQ:GEHC) in its Q4 2024 investor letter. GE HealthCare Technologies Inc. (NASDAQ:GEHC) manufactures and markets products, services, and complementary digital solutions used in the diagnosis, treatment, and monitoring of patients. The one-month return of GE HealthCare Technologies Inc. (NASDAQ:GEHC) was 9.13%, and its shares gained 15.64% of their value over the last 52 weeks. On January 14, 2025, GE HealthCare Technologies Inc. (NASDAQ:GEHC) stock closed at $84.13 per share with a market capitalization of $38.44 billion.
Oakmark Fund stated the following regarding GE HealthCare Technologies Inc. (NASDAQ:GEHC) in its Q4 2024 investor letter:
“GE HealthCare Technologies Inc. (NASDAQ:GEHC) is a leading global medical technology company that was spun off from General Electric in January 2023. As a standalone company, we expect GE HealthCare to benefit from increased focus, better aligned management and incentives, and an improved corporate culture. We believe these changes will help drive higher margins and organic growth. In addition, we think GE HealthCare is well-positioned to capitalize on technology trends as a greater portion of the value proposition comes from AI-enabled software and a shift toward precision care. A lack of appreciation for the company’s self-help potential coupled with short-term concerns around weak demand in China provided us with the opportunity to purchase shares at a low valuation relative to other high-quality medical technology companies and at the lowest price relative to the S&P 500 since the IPO.”
A surgeon in surgical gown using an advanced medical technology device to perform a spine implant surgery.
GE HealthCare Technologies Inc. (NASDAQ:GEHC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 50 hedge fund portfolios held GE HealthCare Technologies Inc. (NASDAQ:GEHC) at the end of the third quarter which was 49 in the previous quarter. In the third quarter, GE HealthCare Technologies Inc. (NASDAQ:GEHC) reported $4.9 billion in revenues, with organic revenue growth of 1%. While we acknowledge the potential of GE HealthCare Technologies Inc. (NASDAQ:GEHC) 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 GE HealthCare Technologies Inc. (NASDAQ:GEHC) and shared billionaire Daniel Sundheim’s top stock picks heading into 2025. 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.