Oakmark Funds, advised by Harris Associates, released its “Oakmark International Fund” third quarter 2024 investor letter. A copy of the same can be downloaded here. For the quarter ended September 30, 2024, the fund returned 8.79% compared to the MSCI World ex USA Index’s 7.76% return. Since its inception, the fund returned 8.55% compared to a 6.22% return for the index. Healthcare and industrials were the largest contributors to the fund’s performance in the quarter. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Oakmark International Fund highlighted stocks like Diageo plc (NYSE:DEO) in the third quarter 2024 investor letter. Diageo plc (NYSE:DEO) engages in the production and distribution of alcoholic beverages. The one-month return of Diageo plc (NYSE:DEO) was 1.53%, and its shares lost 10.58% of their value over the last 52 weeks. On October 10, 2024, Diageo plc (NYSE:DEO) stock closed at $134.13 per share with a market capitalization of $74.512 billion.
Oakmark International Fund stated the following regarding Diageo plc (NYSE:DEO) in its Q3 2024 investor letter:
“Diageo plc (NYSE:DEO) is a global producer, distributor and marketer of premium drinks with more than 200 brands and sales in nearly 180 countries. The U.K.-based holding company’s portfolio includes leading brands, such as Johnnie Walker, Guinness, Don Julio, Crown Royal, Smirnoff, Baileys, Casamigos and Captain Morgan. As a market leader, Diageo’s scale provides meaningful competitive advantages in terms of distribution and marketing, which enables the company to invest more than its peers while still generating strong returns on capital. In addition, we like that the company’s portfolio is well diversified by geography and category, which helps mitigate against earnings volatility related to economic cyclicality and shifting consumer preferences. Industry destocking and what we believe is temporary weaker demand have weighed on the share price recently, which provided an attractive re-entry point to invest in this dominant beverage company at a below-average price.”
A close-up of an iconic bottle of branded spirit produced by the distillery.
Diageo plc (NYSE:DEO) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Diageo plc (NYSE:DEO) at the end of the second quarter which was 30 in the previous quarter. Diageo plc’s (NYSE:DEO) organic net sales declined 0.6% in fiscal year 2024, after three years of extraordinary top line growth. While we acknowledge the potential of Diageo plc (NYSE:DEO) 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 Diageo plc (NYSE:DEO) and shared ClearBridge Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.