Oakmark Funds, advised by Harris Associates, released its “Oakmark Equity and Income Fund” second quarter 2024 investor letter, revealing a -2.19% return compared to the Lipper Balanced Fund Index’s 1.11%. The equity portfolio returned -3.97%, against 4.28% for the S&P 500 Index. The fund’s portfolio allocation is 58.0% in equities, 40.7% in fixed income, and 1.3% in cash.
Oakmark highlighted GE HealthCare Technologies Inc. (NASDAQ) in its letter, emphasizing the company’s potential following its spin-off from GE in January 2023. Oakmark believes GE HealthCare will benefit from increased focus, better management alignment, and an improved corporate culture, driving higher margins and organic growth. The fund sees significant potential in GE HealthCare’s AI-enabled software and precision care advancements, noting the opportunity to purchase shares at a discounted valuation.
GE HealthCare Technologies Inc. (NASDAQ) saw a one-month return of 4.51%, despite a 2.30% loss over the past year. On July 11, 2024, GEHC closed at $79.94 per share, with a market cap of $36.49 billion.
While acknowledging GE HealthCare’s potential, Oakmark expresses a stronger conviction in AI stocks for higher, faster returns.
