Oakmark Funds, an investment management company, released its “Oakmark Equity and Income Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. The fund generated a 7.2% return in the fourth quarter compared to a 6.4% return for the Lipper Balanced Fund Index. 2022 was a tough year for balanced funds, and the fund declined 12.9% in the year, compared to a 14.4% decline for the benchmark index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Oakmark Funds highlighted stocks like Masco Corporation (NYSE:MAS) in its Q4 2022 investor letter. Headquartered in Livonia, Michigan, Masco Corporation (NYSE:MAS) is a home improvement and building product distributor. On January 9, 2023, Masco Corporation (NYSE:MAS) stock closed at $50.36 per share. One-month return of Masco Corporation (NYSE:MAS) was -2.06%, and its shares lost 25.37% of their value over the last 52 weeks. Masco Corporation (NYSE:MAS) has a market capitalization of $11.358 billion.
Oakmark Funds made the following comment about Masco Corporation (NYSE:MAS) in its Q4 2022 investor letter:
“During the quarter, we added one new position—Masco Corporation (NYSE:MAS), a leader in home improvement products. We believe the market is failing to properly reward the company’s significant upgrades in its product offerings over the past decade. During this time, management has sold off the company’s more cyclical, lower return businesses, such as insulation and windows and cabinets, and now Masco focuses its efforts on some of the strongest and most recognizable brands in the industry. The company’s portfolio of products—primarily coatings (Behr) and plumbing fixtures (Delta, Hansgrohe)—are more resilient, lower cost and higher margin categories. Both product segments compete within heavily consolidated industries, exhibit solid pricing power, and skew meaningfully toward the less cyclical repair-andremodel markets. Despite this greatly improved business mix, Masco trades at a discount to historical levels and comfortably below a market multiple. We believe this dislocation presents an attractive opportunity for us to invest in a well-managed, high-quality portfolio in a sector that’s currently out of favor.”
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Masco Corporation (NYSE:MAS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Masco Corporation (NYSE:MAS) at the end of the third quarter, which was 26 in the previous quarter.
We discussed Masco Corporation (NYSE:MAS) in another article and shared best hardware stocks to buy. In addition, please check out our hedge fund investor letters Q4 2022 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.
