Oakmark Funds, an investment management company, released its “Oakmark Select Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. The fund returned 4.7% in the fourth quarter compared to a 7.6% return for the S&P 500 Index. For the full year 2022, the fund returned -22.7% compared to the -18.1% return for the S&P 500. The firm is disappointed with the performance of the fund. However, they still focus on creating high-conviction portfolio of undervalued companies that will offer attractive risk-adjusted returns and margin of safety over a long period. The largest contributors in the quarter were financials and energy sectors while the consumer discretionary sector detracted from the performance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Oakmark Funds highlighted stocks like Oracle Corporation (NYSE:ORCL) in its Q4 2022 investor letter. Headquartered in Austin, Texas, Oracle Corporation (NYSE:ORCL) offers software products and services worldwide. On January 9, 2023, Oracle Corporation (NYSE:ORCL) stock closed at $86.42 per share. One-month return of Oracle Corporation (NYSE:ORCL) was 7.27%, and its shares lost 2.33% of their value over the last 52 weeks. Oracle Corporation (NYSE:ORCL) has a market capitalization of $233.01 billion.
Oakmark Funds made the following comment about Oracle Corporation (NYSE:ORCL) in its Q4 2022 investor letter:
“The sell-off in the software sector provided us with an opportunity to purchase shares of Oracle Corporation (NYSE:ORCL) this quarter. Although investors have generally admired Oracle’s stability and its strong customer relationships, they have also viewed it as a slower growth software company. We believe Oracle’s reported financial results have been depressed in recent years by its transition to the cloud, the benefits of which are finally becoming visible. Oracle’s cloud-based application businesses are now growing 25-30% organically, and its cloud-based infrastructure businesses are growing even faster. As these businesses have become a larger percentage of revenue, the company’s overall growth has also accelerated. In our view, the stock price does not yet reflect this stronger growth outlook and the shares are undervalued today at just 14x our estimate of normal earnings.”
Oracle Corporation (NYSE:ORCL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 67 hedge fund portfolios held Oracle Corporation (NYSE:ORCL) at the end of the third quarter which was 69 in the previous quarter.
We discussed Oracle Corporation (NYSE:ORCL) in another article and shared the list of cheap stocks to buy that outperformed in 2022. 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.
