Oakmark Funds, advised by Harris Associates, released its “Oakmark Global Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned -3.01% in the quarter compared to a 2.63% return for the MSCI World Index (net). The fund generated a 9.14% return since its inception compared to the index’s 6.23% return over the same period. The largest contributors at the sector level were communication services and financials, while the largest detractors were industrials and health care. 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 Etsy, Inc. (NASDAQ:ETSY) in the Q2 2024 investor letter. Etsy, Inc. (NASDAQ:ETSY) operates two-sided online marketplaces that connect buyers and sellers. The one-month return of Etsy, Inc. (NASDAQ:ETSY) was 2.77%, and its shares lost 34.42% of their value over the last 52 weeks. On July 12, 2024, Etsy, Inc. (NASDAQ:ETSY) stock closed at $60.50 per share with a market capitalization of $7.074 billion.
Oakmark Global Fund stated the following regarding Etsy, Inc. (NASDAQ:ETSY) in its Q2 2024 investor letter:
“Etsy, Inc. (NASDAQ:ETSY) is a global marketplace for unique and creative goods that connects millions of buyers and sellers across the world. We first became interested in Etsy in 2017 when Josh Silverman took over as CEO and began transforming the company from a borderline nonprofit into a higher margin, faster-growing enterprise. The Covid-19 pandemic accelerated the company’s already strong fundamental results as millions of new customers flocked to the platform, but like many other Covid-19 beneficiaries, Etsy has since fallen deeply out of favor. In our view, investors today are too focused on the timing of Etsy’s return to growth and are ignoring the company’s positive long-term outlook. We believe the macro environment for Etsy’s product categories will eventually improve and Etsy is poised to benefit. At the same time, we believe Etsy’s continued push into international markets can provide a solid source of revenue growth for the long-term. After the recent sell-off, we were able to purchase shares at a discount to our estimate of intrinsic value.”
A young woman shopping for a vintage fashion item online.
Etsy, Inc. (NASDAQ:ETSY) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Etsy, Inc. (NASDAQ:ETSY) at the end of the first quarter which was 36 in the previous quarter. Etsy, Inc.’s (NASDAQ:ETSY) revenue for the first quarter increased by 0.8% to reach $646 million and reported $168 million in adjusted EBITDA. While we acknowledge the potential of Etsy, Inc. (NASDAQ:ETSY) 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 Etsy, Inc. (NASDAQ:ETSY) and shared ClearBridge Mid Cap Strategy’s views on the company in the previous quarter. 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.
