Oakmark Funds, advised by Harris Associates, released its “Oakmark Equity and Income Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund delivered -2.19% during the quarter compared to the Lipper Balanced Fund Index’s 1.11% return. The equity portfolio returned -3.97% in the quarter, compared to 4.28% for the S&P 500 Index. The fixed-income portfolio returned 0.75%. The fund has allocated its portfolio, 58.0% in equities, 40.7% in fixed income, and 1.3% cash. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Oakmark Equity and Income Fund highlighted stocks like GE HealthCare Technologies Inc. (NASDAQ:GEHC) in its Q2 2024 investor letter. GE HealthCare Technologies Inc. (NASDAQ:GEHC) develops, 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 4.51%, and its shares lost 2.30% of their value over the last 52 weeks. On July 11, 2024, GE HealthCare Technologies Inc. (NASDAQ:GEHC) stock closed at $79.94 per share with a market capitalization of $36.49 billion.
Oakmark Equity and Income Fund stated the following regarding GE HealthCare Technologies Inc. (NASDAQ:GEHC) in its Q2 2024 investor letter:
“GE HealthCare Technologies Inc. (NASDAQ:GEHC) is a leading global medical technology company that was spun off from GE 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 this will help drive higher margins and sustainably higher organic growth over time. Additionally, we believe GE HealthCare is well-positioned to capitalize on technology trends in healthcare as an increasing portion of the value proposition comes from AI-enabled software, as well as a shift towards precision care. In our view, investors have a stale perception of GE HealthCare and haven’t given the company credit for the significant self-help potential or the improving industry backdrop, which provided the opportunity to purchase shares at a discounted valuation to other quality medical technology companies.”
A radiologist in a lab examining a computed tomography scan of a patient.
GE HealthCare Technologies Inc. (NASDAQ:GEHC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held GE HealthCare Technologies Inc. (NASDAQ:GEHC) at the end of the first quarter which was 44 in the previous quarter. GE HealthCare Technologies Inc.’s (NASDAQ:GEHC) first-quarter 2024 revenues were approximately $4.6 billion and remained flat year-over-year. 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.
We discussed GE HealthCare Technologies Inc. (NASDAQ:GEHC) in another article and shared Jim Cramer’s favorite healthcare stock picks in 2024. In addition, please check out our hedge fund investor letters Q2 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.
