Oakmark Funds, advised by Harris Associates, released its “Oakmark Equity and Income Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund delivered -2.19% during the quarter compared to the Lipper Balanced Fund Index’s 1.11% return. The equity portfolio returned -3.97% in the quarter, compared to 4.28% for the S&P 500 Index. The fixed-income portfolio returned 0.75%. The fund has allocated its portfolio, 58.0% in equities, 40.7% in fixed income, and 1.3% cash. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Oakmark Equity and Income Fund highlighted stocks like Keurig Dr Pepper Inc. (NASDAQ:KDP) in its Q2 2024 investor letter. Keurig Dr Pepper Inc. (NASDAQ:KDP) owns, manufactures, and distributors beverages and single-serve brewing systems. The one-month return of Keurig Dr Pepper Inc. (NASDAQ:KDP) was -4.73%, and its shares gained 2.43% of their value over the last 52 weeks. On July 11, 2024, Keurig Dr Pepper Inc. (NASDAQ:KDP) stock closed at $32.43 per share with a market capitalization of $43.961 billion.
Oakmark Equity and Income Fund stated the following regarding Keurig Dr Pepper Inc. (NASDAQ:KDP) in its Q2 2024 investor letter:
“Keurig Dr Pepper Inc. (NASDAQ:KDP) is one of North America’s leading beverage companies, with dominant positions in single-serve coffee and flavored soft drinks. The soft drink portfolio has an enviable track record of volume growth and market share gains. We believe this strong performance can continue well into the future thanks to favorable demographic trends, brand strength, and its unique distribution network. Recently, the stock price came under pressure due to fundamental weakness in the Keurig coffee division. At-home coffee consumption is normalizing as people return to work, while price hikes are also weighing on demand. We believe these industry-wide challenges will prove transitory, as coffee remains a popular beverage across demographics. Keurig is poised to capitalize on this demand with the largest installed base of single-serve brewers and ample runway to further increase household penetration. At the current quote, the market as cribes minimal value to Keurig. We were happy to purchase shares in this above-average business that is trading at a discount to the market, other beverage peers and private market transactions.”
A conveyor belt filled with assorted K-Cup pods, ready for packaging.
Keurig Dr Pepper Inc. (NASDAQ:KDP) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held Keurig Dr Pepper Inc. (NASDAQ:KDP) at the end of the first quarter which was 37 in the previous quarter. While we acknowledge the potential of Keurig Dr Pepper Inc. (NASDAQ:KDP) 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.
We discussed Keurig Dr Pepper Inc. (NASDAQ:KDP) in another article and shared the list of top stock picks of a former SAC Capital equity analyst Jonathan Tepper. 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.
