WBD - Harris Associates U.S. Large Value Strategy Q1 2024 Commentary

2024-05-25 10:40:00 ET

Summary

• Harris Associates is an asset management firm that serves as the investment adviser to the Oakmark Funds. We seek to invest in businesses that are priced at substantial discounts to our estimate of intrinsic value.
• U.S. equities performed well in Q1 2024, driven by excitement around artificial intelligence and expectations of rate cuts from the Federal Reserve.
• The portfolio's return for the reporting period was 10.31%, outperforming the Russell 1000® Value Index.
• General Motors, Kroger, and a financials firm were top contributors to the portfolio, while Charter Communications, Warner Bros. Discovery, and Liberty Broadband were detractors.

Market Environment

U.S. equities showed strength throughout the first quarter of 2024, aided by excitement surrounding artificial intelligence, encouraging economic data and investor expectations for rate cuts from the U.S. Federal Reserve this calendar year. As a result, U.S. market indexes reached new highs. In March, the Federal Reserve Open Market Committee held a meeting and chose to leave interest rates unchanged while it continues to monitor evolving economic data....

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