Oakmark Funds, advised by Harris Associates, released its “Oakmark Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned 7.38% in the third quarter, compared to a 5.89% return for the S&P 500 Index. The fund has returned 12.86% since its inception compared to the index return of 10.67% over the same period. The largest contributors to the fund for the quarter were financials and industrials while the energy sector detracted. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Oakmark Fund highlighted stocks like The Charles Schwab Corporation (NYSE:SCHW) in the third quarter 2024 investor letter. The Charles Schwab Corporation (NYSE:SCHW) is a savings and loan holding company that offers wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The one-month return of The Charles Schwab Corporation (NYSE:SCHW) was 7.29%, and its shares gained 29.85% of their value over the last 52 weeks. On October 10, 2024, The Charles Schwab Corporation (NYSE:SCHW) stock closed at $66.65 per share with a market capitalization of $121.926 billion.
Oakmark Fund stated the following regarding The Charles Schwab Corporation (NYSE:SCHW) in its Q3 2024 investor letter:
“The Charles Schwab Corporation (NYSE:SCHW) was the top detractor during the quarter. The U.S.-headquartered brokerage company saw net interest revenue, its biggest top-line contributor, fall year over year as deposit balances declined and Schwab was instead forced to use higher cost sources to fund its balance sheet. This was compounded by heightened regulatory scrutiny on the interest rate paid on cash balances at other brokerage firms, which has weighed on share price performance across the sector. We believe Schwab will be less affected by this regulatory scrutiny than peers due to its role as a service provider to independent advisors. Meanwhile, we continue to expect the declines in Schwab deposits to level off, with underlying business growth eventually allowing the company to replace its higher cost funding with low-cost deposits, thereby driving an increase in earnings. We continue to view Schwab as a strong business with meaningful scale advantages that should create value for shareholders over the long term.”
A corporate finance professional studying a financial performance chart.
The Charles Schwab Corporation (NYSE:SCHW) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 72 hedge fund portfolios held The Charles Schwab Corporation (NYSE:SCHW) at the end of the second quarter which was 71 in the previous quarter. The Charles Schwab Corporation’s (NYSE:SCHW) second quarter revenue increased 1% year-over-year to $4.7 billion. While we acknowledge the potential of The Charles Schwab Corporation (NYSE:SCHW) 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 The Charles Schwab Corporation (NYSE:SCHW) and shared Middle Coast Investing’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.
