Oakmark Funds, an investment management company, released its “Oakmark Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund generated a 10.3% return compared to a 7.6% return for the S&P 500 Index. During the year 2022, the fund returned -13.4% compared to the -18.1% return for the S&P 500 Index. Every sector in which the fund invested contributed positively to the fund’s performance in the quarter. The financials and energy sectors were the largest contributors. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Oakmark Funds highlighted stocks like Magna International Inc. (NYSE:MGA) in its Q4 2022 investor letter. Headquartered in Aurora, Canada, Magna International Inc. (NYSE:MGA) is a Canadian automobile parts manufacturer. On January 9, 2023, Magna International Inc. (NYSE:MGA) stock closed at $60.72 per share. One-month return of Magna International Inc. (NYSE:MGA) was 1.42%, and its shares lost 28.97% of their value over the last 52 weeks. Magna International Inc. (NYSE:MGA) has a market capitalization of $17.484 billion.
Oakmark Funds made the following comment about Magna International Inc. (NYSE:MGA) in its Q4 2022 investor letter:
“Magna International Inc. (NYSE:MGA) is one of the largest global auto suppliers. The company has leading market share positions in most of its major product lines. Results have been pressured because global auto production volumes have been depressed relative to normal levels over the past few years. However, as volumes recover, we believe that Magna will deliver material revenue growth and margin expansion off of today’s depressed earnings base. Further, Magna is particularly well-positioned among auto suppliers because the vast majority of its business is either unaffected by or positively exposed to the megatrends of electrification and autonomy. We believe that Magna, trading at less than 7x our estimate of normal earnings per share, presents an attractive opportunity to invest in a well-managed company in an out-of-favor sector.”
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Magna International Inc. (NYSE:MGA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Magna International Inc. (NYSE:MGA) at the end of the third quarter, which was 20 in the previous quarter.
We discussed Magna International Inc. (NYSE:MGA) in another article and shared the list of stocks that Jim Cramer is bearish on. In addition, please check out our hedge fund investor letters Q4 2022 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.