Oakmark Funds, advised by Harris Associates, released its “Oakmark Equity and Income Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. The fund increased 3.3% in the first quarter compared to a 4.3% return for the Lipper Balanced Fund Index. The fund generated a 9.4% compounded annual rate of return since its inception in 1995 compared to the Index’s return of 6.7%. The equities returned 4.4% in the quarter underperforming the S&P 500 Index which returned 7.5%. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Oakmark Equity and Income Fund highlighted stocks like State Street Corporation (NYSE:STT) in the first quarter 2023 investor letter. Headquartered in Boston, Massachusetts, State Street Corporation (NYSE:STT) is a financial products and services provider to institutional investors. On April 12, 2023, State Street Corporation (NYSE:STT) stock closed at $78.21 per share. One-month return of State Street Corporation (NYSE:STT) was 4.63%, and its shares gained 3.17% of their value over the last 52 weeks. State Street Corporation (NYSE:STT) has a market capitalization of $26.314 billion.
Oakmark Equity and Income Fund made the following comment about State Street Corporation (NYSE:STT) in its Q1 2023 investor letter:
“The Oakmark Equity and Income Fund has 29% of its equity portfolio in financials. This made the March sell-off painful, but we do not believe that this has meaningfully changed the value of most of our financial equity holdings. In fact, we were adding to financial positions throughout March. We believe that one way to analyze our financial holdings is to look at them in different buckets given their various business models and risk profiles. Almost 30% of our financial exposure is in insurance companies and insurance brokers. Insurance companies have very stable liability profiles, so the main risk is a change in asset values. We are comfortable with their investment portfolios and think these stocks are quite attractive. Around 5% of our financials are asset managers. This leaves a little over 40% of the financials exposure in a varied group of banks and lenders. About 5% of that portfolio is in Bank of America and State Street Corporation (NYSE:STT). These two banks are designated as Systematically Important Financial Institutions and are held to higher regulatory standards. State Street is a trust bank that does very little lending, has significant excess capital, and should benefit from rising net interest income.”
State Street Corporation (NYSE:STT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held State Street Corporation (NYSE:STT) at the end of the fourth quarter which was 38 in the previous quarter.
We discussed State Street Corporation (NYSE:STT) in another article and shared the list of biggest mutual fund companies in the world. In addition, please check out our hedge fund investor letters Q1 2023 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.
