Oakmark Funds, advised by Harris Associates, released its “Oakmark Equity and Income Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. The fund increased 3.3% in the first quarter compared to a 4.3% return for the Lipper Balanced Fund Index. The fund generated a 9.4% compounded annual rate of return since its inception in 1995 compared to the Index’s return of 6.7%. The equities returned 4.4% in the quarter underperforming the S&P 500 Index which returned 7.5%. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Oakmark Equity and Income Fund highlighted stocks like Ally Financial Inc. (NYSE:ALLY) in the first quarter 2023 investor letter. Headquartered in Detroit, Michigan, Ally Financial Inc. (NYSE:ALLY) provides digital financial products and services. On April 12, 2023, Ally Financial Inc. (NYSE:ALLY) stock closed at $26.37 per share. One-month return of Ally Financial Inc. (NYSE:ALLY) was 12.50%, and its shares lost 36.03% of their value over the last 52 weeks. Ally Financial Inc. (NYSE:ALLY) has a market capitalization of $7.932 billion.
Oakmark Equity and Income Fund made the following comment about Ally Financial Inc. (NYSE:ALLY) in its Q1 2023 investor letter:
“The Oakmark Equity and Income Fund has 29% of its equity portfolio in financials. This made the March sell-off painful, but we do not believe that this has meaningfully changed the value of most of our financial equity holdings. In fact, we were adding to financial positions throughout March. We believe that one way to analyze our financial holdings is to look at them in different buckets given their various business models and risk profiles. Almost 30% of our financial exposure is in insurance companies and insurance brokers. Insurance companies have very stable liability profiles, so the main risk is a change in asset values. We are comfortable with their investment portfolios and think these stocks are quite attractive. Around 5% of our financials are asset managers. This leaves a little over 40% of the financials exposure in a varied group of banks and lenders. Capital One and Ally Financial Inc. (NYSE:ALLY) are consumer lenders whose deposits are primarily insured deposits that should be quite stable. Their near-term earnings could be pressured by slowing economic growth, but we believe that trade at mid-single digit multiples of their normalized earnings.”
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Ally Financial Inc. (NYSE:ALLY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held Ally Financial Inc. (NYSE:ALLY) at the end of the fourth quarter which was 42 in the previous quarter.
We discussed Ally Financial Inc. (NYSE:ALLY) in another article and shared the list of most promising dividend stocks according to analysts. In addition, please check out our hedge fund investor letters Q1 2023 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.
