Latest news with #OakmarkFunds
CNBC
08-08-2025
- Business
- CNBC
Value investor Bill Nygren breaks down how he's finding hidden gems in an expensive stock market
Bill Nygren, portfolio manager at Oakmark Funds for four decades, said he's focusing on cheap stocks that return meaningful capital to shareholders with the stock market trading at record highs. The widely followed value investor revealed that he's trying to find hidden gems that are a lot cheaper than the average stock in the S & P 500, which is trading at 23 times forward earnings. Nygren said almost half his holdings have multiples less than 12 times earnings. While his picks don't offer exceptional organic growth, he looks for the companies that have solid repurchase or dividend programs in place. "These companies don't have great organic growth opportunities, but they're generating a lot of free cash flow that doesn't need to be reinvested in the business and they do buybacks and dividends because of that, their dividends and per share growth rates are actually in line with companies that are three times as expensive," Nygren said on CNBC's " Squawk Box ." The overall stock market has chugged along, reaching multiple record highs in late July, as investors cheered corporate profits that came in the face of higher tariffs. The S & P 500 has rebounded more than 30% from its April lows, up nearly 8% in 2025. One stock that Nygren has grown fond of again is Charter Communications , whose price-to-earnings ratio has dropped to about five times. "It's becoming very interesting, as the business is almost entirely an internet and mobile telephone business today," Nygren said. "Market knows that there's not going to be a ton of organic growth, and I think what the market doesn't pay for, as much as it should, is the growth that can come from share repurchase." CHTR YTD mountain Charter Communications year to date Nygren also likes General Motors , which has been volatile this year due to tariff scares. After rallying 48% in 2024, the stock is about flat year to date. "The company was supposed to earn something like $10 a share this year. It'll probably take a year or two to get back to that level, but at five times earnings, we think you're getting paid an awful lot to take on that risk," Nygren said on GM. GM YTD mountain General Motors year to date His other top value picks are Global Payments , Ally Financial , and Corebridge Financial .
CNBC
08-08-2025
- Business
- CNBC
Hot stocks to watch: Oakmark Fund's Bill Nygren on his top value plays
Bill Nygren, Oakmark Funds portfolio manager, joins 'Squawk Box' to discuss the latest market trends, top value stock picks for investor portfolios, and more.
Yahoo
18-07-2025
- Business
- Yahoo
Here's Why Citigroup (C) Rose in Q2
Oakmark Funds, advised by Harris Associates, released its 'Oakmark Fund' second quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund underperformed its benchmark, the S&P 500 Index, but outperformed the benchmark since inception. The largest contributors to performance were financials and consumer discretionary, at the sector level, while health care and consumer staples detracted. In addition, you can check the fund's top 5 holdings to determine its best picks for 2025. In its second quarter 2025 investor letter, Oakmark Fund highlighted stocks such as Citigroup Inc. (NYSE:C). Citigroup Inc. (NYSE:C) is a diversified financial services holding company. The one-month return of Citigroup Inc. (NYSE:C) was 14.89%, and its shares gained 33.15% of their value over the last 52 weeks. On July 16, 2025, Citigroup Inc. (NYSE:C) stock closed at $90.02 per share, with a market capitalization of $165.718 billion. Oakmark Fund stated the following regarding Citigroup Inc. (NYSE:C) in its second quarter 2025 investor letter: "Citigroup Inc. (NYSE:C) was the top contributor during the quarter. The U.S.-headquartered diversified bank's stock price rose throughout the period after it delivered positive first-quarter 2025 results. Despite a volatile macro backdrop, management reiterated full-year guidance across all key measures and reaffirmed their commitment to achieving a double-digit return on tangible common equity target. Share repurchases stepped up during the first quarter, with management projecting further increases as the year progresses. Shares also benefitted from growing optimism around a more favorable regulatory outlook for banks, including potential capital relief that could support higher returns and distributions to shareholders." An image of a customer in a bank carrying a bag full of documents and smiling confidently. Citigroup Inc. (NYSE:C) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 96 hedge fund portfolios held Citigroup Inc. (NYSE:C) at the end of the first quarter, which was 101 in the previous quarter. While we acknowledge the potential of C as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Citigroup Inc. (NYSE:C) and shared the list of stocks Jim Cramer shared insights on. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-07-2025
- Business
- Yahoo
Positive Results Lifted Alphabet (GOOGL) in Q2
Oakmark Funds, advised by Harris Associates, released its 'Oakmark Select Fund' second quarter 2025 investor letter. A copy of the letter can be downloaded here. In the quarter, the fund underperformed the benchmark, the S&P 500 Index, while it has outperformed the benchmark since inception. Financials and consumer discretionary were the largest contributors at the sector level, while health care and energy detracted. In addition, you can check the fund's top 5 holdings to determine its best picks for 2025. In its second quarter 2025 investor letter, Oakmark Select Fund highlighted stocks such as Alphabet Inc. (NASDAQ:GOOGL). Alphabet Inc. (NASDAQ:GOOGL), the parent company of Google, offers various platforms and services operating through Google Services, Google Cloud, and Other Bets segments. The one-month return of Alphabet Inc. (NASDAQ:GOOGL) was 5.57%, and its shares gained 1.08% of their value over the last 52 weeks. On July 1, 2025, Alphabet Inc. (NASDAQ:GOOGL) stock closed at $182.97 per share, with a market capitalization of $2.225 trillion. Oakmark Select Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its second quarter 2025 investor letter: "Alphabet Inc. (NASDAQ:GOOGL) was the top contributor during the quarter. The U.S.-headquartered technology company's stock price rose relatively steadily throughout the period after it delivered solid first-quarter 2025 earnings and mega-cap tech stocks trended higher. Despite concerns around incremental competition, Google Search revenue grew low-double digits and was slightly ahead of consensus forecasts. Operating income was also ahead of expectations, with Alphabet improving margins even as the company continues to make substantial investments in AI. We believe the potential payoff from these investments across each of Alphabet's business units remains underappreciated. After adjusting for the value of Google Cloud and Alphabet's Other Bets, we believe the Search, YouTube and Android businesses are being valued at a low-teens price-to-earnings (P/E) multiple. We still see this as an attractive valuation." A user's hands typing a search query into a Google Search box, emphasizing the company's search capabilities. Alphabet Inc. (NASDAQ:GOOGL) is in 4th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 227 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOGL) at the end of the first quarter, which was 234 in the previous quarter. While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Alphabet Inc. (NASDAQ:GOOGL) and shared the list of best US stocks to buy according to billionaires. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
17-07-2025
- Business
- Yahoo
Is IQVIA Holdings (IQV) an Attractive Investment Opportunity?
Oakmark Funds, advised by Harris Associates, released its 'Oakmark Select Fund' second quarter 2025 investor letter. A copy of the letter can be downloaded here. In the quarter, the fund underperformed the benchmark, the S&P 500 Index, while it has outperformed the benchmark since inception. Financials and consumer discretionary were the largest contributors at the sector level, while health care and energy detracted. In addition, you can check the fund's top 5 holdings to determine its best picks for 2025. In its second quarter 2025 investor letter, Oakmark Select Fund highlighted stocks such as IQVIA Holdings Inc. (NYSE:IQV). IQVIA Holdings Inc. (NYSE:IQV) is an analytical technology services and clinical research-providing company to the life sciences industry. The one-month return IQVIA Holdings Inc. (NYSE:IQV) was -2.61%, and its shares lost 31.11% of their value over the last 52 weeks. On July 16, 2025, IQVIA Holdings Inc. (NYSE:IQV) stock closed at $158.64 per share with a market capitalization of $27.445 billion. Oakmark Select Fund stated the following regarding IQVIA Holdings Inc. (NYSE:IQV) in its second quarter 2025 investor letter: "IQVIA Holdings Inc. (NYSE:IQV) was the top detractor during the quarter. The U.S.-headquartered provider of biopharma services saw its stock price decline amidst uncertainty related to possible price controls on drugs, concerns about potential pharma tariffs and government agency budget cuts. IQV's first-quarter results in its Contract Research Organization segment held up better than peers and its Technology and Analytic Solutions segment is performing well, but the overall outlook for the near-term is weak due to a slowdown in biopharma R&D spending. This pressure notwithstanding, we believe the company's intermediate and long-term prospects remain solid. With the shares trading close to an all-time low multiple and management stepping up the level of repurchases, we believe that IQV is an attractive investment today." A researcher in a lab with a microscope examining a sample. IQVIA Holdings Inc. (NYSE:IQV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 67 hedge fund portfolios held IQVIA Holdings Inc. (NYSE:IQV) at the end of the first quarter, which was 51 in the previous quarter. IQVIA Holdings Inc. (NYSE:IQV) reported first quarter revenue of $3,829 million, up 2.5% reported, 3.5% at constant currency. While we acknowledge the potential of IQV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered IQVIA Holdings Inc. (NYSE:IQV) and shared the list of most undervalued NYSE stocks to buy. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
