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 Intercontinental Exchange, Inc. (NYSE:ICE) in its Q4 2022 investor letter. Headquartered in Atlanta, Georgia, Intercontinental Exchange, Inc. (NYSE:ICE) operates through Exchanges, Fixed Income and Data Services, and Mortgage Technology segments. On January 9, 2023, Intercontinental Exchange, Inc. (NYSE:ICE) stock closed at $105.24 per share. One-month return of Intercontinental Exchange, Inc. (NYSE:ICE) was -0.02%, and its shares lost 19.97% of their value over the last 52 weeks. Intercontinental Exchange, Inc. (NYSE:ICE) has a market capitalization of $58.782 billion.
Oakmark Funds made the following comment about Intercontinental Exchange, Inc. (NYSE:ICE) in its Q4 2022 investor letter:
“Intercontinental Exchange, Inc. (NYSE:ICE) is one of the largest and most successful financial exchange operators. The company was created through a series of shrewd acquisitions under founder and CEO Jeff Sprecher. We believe Sprecher is an excellent CEO with a history of astute capital allocation and an ability to adapt to opportunities and competitive threats. Today, Intercontinental Exchange competes in three primary segments: exchanges, fixed income/data services and mortgage technology. We believe each of these businesses exhibits attractive economic characteristics and will grow earnings faster than GDP over time. Investors today are concerned about Intercontinental Exchange’s mortgage segment as rising interest rates have depressed origination volumes. We agree that segment results will be pressured in the near term, but we believe that originations will eventually revert toward historical norms. Adjusting for this cyclicality, Intercontinental Exchange trades at a discount to the S&P 500 P/E multiple. We are happy to buy this above-average business at a below-average price.”
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Intercontinental Exchange, Inc. (NYSE:ICE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 59 hedge fund portfolios held Intercontinental Exchange, Inc. (NYSE:ICE) at the end of the third quarter which was 51 in the previous quarter.
We discussed Intercontinental Exchange, Inc. (NYSE:ICE) in another article and shared the list of pro-life companies to invest in. 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.
