Oakmark Funds, advised by Harris Associates, released its “Oakmark Equity and Income Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund delivered 6.16% during the quarter compared to the Lipper Balanced Fund Index’s 5.55% return. The equity portfolio returned 7.30% in the quarter, compared to 5.89% for the S&P 500 Index. The fixed-income portfolio returned 5.16%. The fund has allocated 60.1% in equities, 38.4% in fixed income, and 1.5% in cash. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Oakmark Equity and Income Fund highlighted stocks like LPL Financial Holdings Inc. (NASDAQ:LPLA) in the third quarter 2024 investor letter. Based in San Diego, California, LPL Financial Holdings Inc. (NASDAQ:LPLA) is an integrated platform provider of brokerage and investment advisory services. The one-month return of LPL Financial Holdings Inc. (NASDAQ:LPLA) was 18.30%, and its shares gained 6.80% of their value over the last 52 weeks. On October 10, 2024, LPL Financial Holdings Inc. (NASDAQ:LPLA) stock closed at $243.36 per share with a market capitalization of $18.194 billion.
Oakmark Equity and Income Fund stated the following regarding LPL Financial Holdings Inc. (NASDAQ:LPLA) in its Q3 2024 investor letter:
“LPL Financial Holdings Inc. (NASDAQ:LPLA) is a leading provider of infrastructure and support services to independent wealth management advisors in the U.S. We believe the company has developed one of the industry’s most compelling offerings, which has led to an impressive track record of both strong organic asset growth and high advisor retention. In an industry with high fixed costs and a fragmented customer base, we think LPL’s strong growth creates scale advantages that are self-reinforcing as more customers leads to more revenue, which leads to more resources for reinvestment in infrastructure and support services, which in turn attracts more customers to the platform. Over recent months, LPL has traded at a sizeable discount to the broader market as near-term concerns regarding regulatory headwinds and interest rate cuts have weighed on investor sentiment. However, we believe short-term challenges will have little bearing on the company’s long-term earnings trajectory. We were pleased to purchase shares in this growing business at a discounted price.”
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LPL Financial Holdings Inc. (NASDAQ:LPLA) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held LPL Financial Holdings Inc. (NASDAQ:LPLA) at the end of the second quarter which was 47 in the previous quarter. In the second quarter, LPL Financial Holdings Inc.’s (NASDAQ:LPLA) total assets increased to $1.5 trillion and its organic net new assets increased 8% on an annualized basis to $29 billion. While we acknowledge the potential of LPL Financial Holdings Inc. (NASDAQ:LPLA) 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 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.