Oakmark Funds, an investment management firm, published its “Oakmark Global Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. The Oakmark Global Fund declined by 5.53% for the quarter ended March 31, 2022, compared to a decline of 5.15% for the MSCI World Index and a decline of 8.23% for the Lipper Global Fund Index. Since its inception in 1999, the Fund has achieved a compound annual rate of return of 9.89%, which compares to 6.03% for the MSCI World Index and 6.13% for the Lipper Global Fund Index. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, Oakmark Global Fund mentioned Credit Suisse Group AG (NYSE:CS) and explained its insights for the company. Founded in 1856, Credit Suisse Group AG (NYSE:CS) is a Zürich, Switzerland-based global investment bank and financial services firm with an $18.2 billion market capitalization. Credit Suisse Group AG (NYSE:CS) delivered a -27.59% return since the beginning of the year, while its 12-month returns are down by -32.04%. The stock closed at $6.98 per share on April 22, 2022.
Here is what Oakmark Global Fund has to say about Credit Suisse Group AG (NYSE:CS) in its Q1 2022 investor letter:
“In addition, we were disappointed to see the departure of Antonio Horta-Osorio from Credit Suisse (NYSE:CS) given his talents and the restructuring plan he initiated there. The company then delivered a disappointing fiscal year 2021 earnings report as a CHF 1.6 billion non-cash goodwill impairment exceeded our expectations and pressured results. Also of concern was the company’s weakened revenue generation as underlying fourth-quarter revenues declined CH 860 million from the year-ago period due primarily to weakness in the investment banking division. Management provided limited guidance for 2022 but reiterated that it would be a transition year, with expectations for about CHF 17 billion in adjusted operating expenditures for the fiscal year. Although the results were a bit disappointing and we understand that 2022 will be a transition year, we appreciate that the problems surfacing today are legacy issues and that Credit Suisse is taking the proper corrective action to improve its franchise and earnings power over the medium term. It is also important to note that Credit Suisse has made significant changes to both its senior management team and its board of directors. Toward the end of the period, the company provided an update on its exposure to Russia, which it reduced since the end of 2021. We believe the remaining exposure, including credit exposure from derivatives and financing from the investment bank, has an immaterial impact on our estimate of the firm’s intrinsic value. Moreover, we remain hopeful that with the various management enhancements mentioned, especially in areas of risk control and compliance, Credit Suisse will live up to its potential and avoid the pitfalls of the past. In the appointment of Axel Lehmann as the new chairman, we hope that with his experience, along with the timely execution of this new strategic plan, that Credit Suisse will not only be strengthened but revitalized.”
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Our calculations show that Credit Suisse Group AG (NYSE:CS) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Credit Suisse Group AG (NYSE:CS) was in 11 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 8 funds in the previous quarter. Credit Suisse Group AG (NYSE:CS) delivered a -24.46% return in the past 3 months.
In March 2022, we also shared another hedge fund’s views on Credit Suisse Group AG (NYSE:CS) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.
Disclosure: None. This article is originally published at Insider Monkey.
