Oakmark Funds, advised by Harris Associates, released its “Oakmark Select Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. The fund returned 10.9% in the first quarter compared to a 7.5% return for the S&P 500 Index. The fund outperformed both general market and value indexes in the quarter. Communication services and information technology were the largest contributing sectors in the quarter, while energy and real estate detracted from performance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Oakmark Select Fund highlighted stocks like The Charles Schwab Corporation (NYSE:SCHW) in the first quarter 2023 investor letter. Headquartered in Westlake, Texas, The Charles Schwab Corporation (NYSE:SCHW) is a savings and loan holding company. On April 10, 2023, The Charles Schwab Corporation (NYSE:SCHW) stock closed at $51.72 per share. One-month return of The Charles Schwab Corporation (NYSE:SCHW) was -8.75%, and its shares lost -35.41% of their value over the last 52 weeks. The Charles Schwab Corporation (NYSE:SCHW) has a market capitalization of $94.064 billion.
Oakmark Select Fund made the following comment about The Charles Schwab Corporation (NYSE:SCHW) in its Q1 2023 investor letter:
“The Charles Schwab Corporation (NYSE:SCHW) is a company that we have followed closely for some time and that has been a holding in the Oakmark Fund since the third quarter of 2018. As the largest discount brokerage platform, Schwab has large scale advantages and a strong competitive position. The shares sold off significantly this quarter in the wake of the Silicon Valley Bank collapse as investors became concerned about mark-to-market losses on Schwab’s securities portfolio. We believe these concerns are overstated and that the risk-reward now justifies holding Schwab shares in the more concentrated Oakmark Select Fund. While there are parallels to Silicon Valley Bank, we believe Schwab has a much higher quality deposit franchise, with deposit balances spread across more than 34 million accounts, the vast majority of which are FDIC insured. Schwab also has significantly positive book value after mark-to-market losses, unlike Silicon Valley Bank’s negative book value. Finally, Schwab’s far superior liquidity profile should allow it to absorb any deposit outflows with minimal long-term business impact. The recent price decline gave us the opportunity to buy shares in this industry leader at a low double-digit multiple of normalized earnings.”
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The Charles Schwab Corporation (NYSE:SCHW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 74 hedge fund portfolios held The Charles Schwab Corporation (NYSE:SCHW) at the end of the fourth quarter which was 75 in the previous quarter.
We discussed The Charles Schwab Corporation (NYSE:SCHW) in another article and shared the list of biggest mutual fund companies in the world. 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.
