Oakmark Funds, advised by Harris Associates, released its “Oakmark Equity and Income Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund delivered -0.20% during the quarter compared to the Lipper Balanced Fund Index’s -1.24% return. The equity portfolio returned 1.28% in the quarter, compared to 2.41% for the S&P 500 Index. The fixed-income portfolio returned -2.25% compared to -3.06% for the Bloomberg U.S. Aggregate Bond Index. The fund has allocated 59.3% in equities, 39.5% in fixed income, and 1.2% in cash. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Oakmark Equity and Income Fund highlighted stocks like Airbnb, Inc. (NASDAQ:ABNB) in the fourth quarter 2024 investor letter. Headquartered in San Francisco, California, Airbnb, Inc. (NASDAQ:ABNB) operates a platform that connects hosts and guests. The one-month return of Airbnb, Inc. (NASDAQ:ABNB) was 0.05%, and its shares lost 5.47% of their value over the last 52 weeks. On January 14, 2025, Airbnb, Inc. (NASDAQ:ABNB) stock closed at $127.60 per share with a market capitalization of $79.721 billion.
Oakmark Equity and Income Fund stated the following regarding Airbnb, Inc. (NASDAQ:ABNB) in its Q4 2024 investor letter:
“Airbnb, Inc. (NASDAQ:ABNB) is an online marketplace to list, discover and book unique accommodations worldwide. The company benefits from a strong network effect between its guests and hosts. We believe there is a long growth runway as global travel is an attractive market, and alternative accommodations have been taking share. We anticipate Airbnb will drive further growth by creating more valuable services for both sides of its network, which includes the potential for paid placement, which has created significant economic value for comparable market places. In our view, management is aligned shareholders and well qualified to lead Airbnb as the company attempts to capture these growth opportunities. Short-term concerns about the macro travel environment and declining margins stemming from growth investments allowed us to purchase shares at a discount to our estimate of business value.”
A vacation home luxury bedroom setup with stunning decor showing a desired getaway experience.
Airbnb, Inc. (NASDAQ:ABNB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 54 hedge fund portfolios held Airbnb, Inc. (NASDAQ:ABNB) at the end of the third quarter which was 63 in the previous quarter. Airbnb, Inc.’s (NASDAQ:ABNB) revenue grew 10% year-over-year in the third quarter to $3.7 billion. While we acknowledge the potential of Airbnb, Inc. (NASDAQ:ABNB) 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 Airbnb, Inc. (NASDAQ:ABNB) and shared ClearBridge Large Cap Growth Strategy’s views on the company. 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.