Oakmark Funds, advised by Harris Associates, released its “Oakmark Global Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned -5.78% in the quarter compared to a -0.16% return for the MSCI World Index (net). The fund generated a 9.01% return since its inception compared to the index’s 6.35% return over the same period. The largest contributors at the sector level were financials and communication services, while the largest detractors were health care and consumer discretionary. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Oakmark Global Fund highlighted stocks like Vail Resorts, Inc. (NYSE:MTN) in the Q4 2024 investor letter. Headquartered in Broomfield, Colorado, Vail Resorts, Inc. (NYSE:MTN) is a mountain resorts and ski areas operator. The one-month return of Vail Resorts, Inc. (NYSE:MTN) was 0.85%, and its shares lost 14.22% of their value over the last 52 weeks. On January 14, 2025, Vail Resorts, Inc. (NYSE:MTN) stock closed at $183.67 per share with a market capitalization of $6.88 billion.
Oakmark Global Fund stated the following regarding Vail Resorts, Inc. (NYSE:MTN) in its Q4 2024 investor letter:
“Vail Resorts, Inc. (NYSE:MTN) is a leading mountain resort company with a portfolio of iconic destinations that includes some of the largest and highest quality ski resorts in North America. The company operates in a stable oligopoly, which combined with the scarcity of its mountain assets, has historically led to significant pricing power. Vail Resorts’ stock price has come under pressure following recent ski seasons that were characterized by severe staffing challenges and poor snow conditions. Positively, the company reported full staffing across its resorts with manage[1]able labor costs and recently announced a significant cost reduction plan, which we think will alleviate some recent headwinds. In addition, we believe Vail Resorts is well positioned to benefit from future price increases to its season pass, Epic Pass, as it is currently priced at a material discount to the competing Ikon Pass, despite having an equal or superior product offering. We think Vail Resorts presents an appealing investment opportunity as we were able to purchase shares in the company at a discount to the market and our estimate to intrinsic value, despite its attractive fundamental outlook.”
An aerial view of a mountain resort, its snow-capped peaks and lush ski slopes revealed in all their glory.
Vail Resorts, Inc. (NYSE:MTN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Vail Resorts, Inc. (NYSE:MTN) at the end of the third quarter which was 29 in the previous quarter. The fiscal first quarter of 2025, Vail Resorts, Inc. (NYSE:MTN) recorded a net loss of $172.8 million, down from $175.5 million net loss during the same period the previous year. While we acknowledge the potential of Vail Resorts, Inc. (NYSE:MTN) 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.
In another article, we discussed Vail Resorts, Inc. (NYSE:MTN) and shared the list of best casino stocks that pay dividends. In addition, please check out our hedge fund investor letters Q4 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.