In This Article:
Oakmark Funds, advised by Harris Associates, released its “Oakmark Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund’s investor class returned 1.14% in the first quarter, compared to a -4.27% return for the S&P 500 Index. The fund has returned 12.76% since its inception compared to the index return of 10.44% over the same period. The largest contributors to the fund for the quarter were financials and consumer staples while consumer discretionary and communication services detracted. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its first quarter 2025 investor letter, Oakmark Fund emphasized stocks such as Constellation Brands, Inc. (NYSE:STZ)r. Constellation Brands, Inc. (NYSE:STZ) is a company that produces and distributes beer, wine, and spirits. The one-month return of Constellation Brands, Inc. (NYSE:STZ) was 2.72%, and its shares lost 28.55% of their value over the last 52 weeks. On April 15, 2025, Constellation Brands, Inc. (NYSE:STZ) stock closed at $183.86 per share with a market capitalization of $33.234 billion.
Oakmark Fund stated the following regarding Constellation Brands, Inc. (NYSE:STZ) in its Q1 2025 investor letter:
"Constellation Brands, Inc. (NYSE:STZ) is the leading imported beer company in the U.S. The company has a strong portfolio made up of iconic premium beer brands such as Modelo, Corona and Pacifico. We like that Constellation's beer segment has consistently outgrown the industry and believe it can further benefit from demographic tailwinds, new distribution points, and future price increases. More recently, the stock price has come under pressure due to both stock specific and industry-wide challenges, some of which we believe will prove transitory. Despite the company’s strong historical performance and expectations for continued above-market beer growth, Constellation trades at a meaningful discount to other consumer packaged goods companies with similar growth outlooks. This dislocation afforded us the opportunity to initiate a position in the company at a significant discount to our estimate of intrinsic value."
A winemaker examining a glass of red wine from a barrel in a cellar.
Constellation Brands, Inc. (NYSE:STZ) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held Constellation Brands, Inc. (NYSE:STZ) at the end of the fourth quarter which was 36 in the previous quarter. While we acknowledge the potential of Constellation Brands, Inc. (NYSE:STZ) 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.