Oakmark Funds, advised by Harris Associates, released its “Oakmark Select Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned 6.01% in the fourth quarter compared to a 2.41% return for the S&P 500 Index. The fund returned 11.88% since its inception compared to the index’s return of 9.82% over the same period. The largest contributing sectors were financials and communication services while the health care and energy sectors detracted. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Oakmark Select Fund highlighted stocks like Keurig Dr Pepper Inc. (NASDAQ:KDP) in the fourth quarter 2024 investor letter. Keurig Dr Pepper Inc. (NASDAQ:KDP) owns and distributes beverages and single serve brewing systems. The one-month return of Keurig Dr Pepper Inc. (NASDAQ:KDP) was -4.40%, and its shares lost 2.02% of their value over the last 52 weeks. On January 14, 2025, Keurig Dr Pepper Inc. (NASDAQ:KDP) stock closed at $31.14 per share with a market capitalization of $42.281 billion.
Oakmark Select Fund stated the following regarding Keurig Dr Pepper Inc. (NASDAQ:KDP) in its Q4 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 impressive track record of volume growth and market share gains. We believe this performance can continue due to favorable demographic trends, brand strength, and distribution advantages. Recently, weakness in the Keurig coffee division caused the stock price to come under pressure. However, we believe these industry-wide challenges will prove transitory because coffee remains a popular beverage. Keurig’s coffee division is poised to capitalize on this demand with the largest installed base of single-serve brewers and ample runway to increase household penetration. At the current quote, the market ascribes minimal value to Keurig. We were happy to purchase shares in this above-average business at a discount to the market multiple, 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 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Keurig Dr Pepper Inc. (NASDAQ:KDP) at the end of the third quarter which was 41 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.
In another article, we discussed Keurig Dr Pepper Inc. (NASDAQ:KDP) and shared RS Concentrated All Cap Value Strategy’s views on the company in the previous quarter. 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.