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$50 Billion Fund Has A Fortune Invested In These 5 Stocks

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Harris Associates LP was founded in 1976. The investment firm follows fundamental and proprietary research for portfolio management. It had $105 billion worth of assets under management as of September 30,2016. The biggest portion of its portfolio is invested in Finance stocks, followed by Information Technology stocks.

During the September quarter, the fund’s major holdings consisted of prominent companies such as General Motors Company (NYSE:GM), Bank of America Corp (NYSE:BAC), Alphabet Inc (NASDAQ:GOOG), TE Connectivity Ltd (NYSE:TEL) and American International Group Plc (NYSE:AIG). This article will discuss the fund’s strategy regarding the stocks.

The smart money sentiment is an important metric that can be used to assess the long-term profitability of a stock. While there are thousands of stocks trading daily on the market, taking a look at what hedge funds think about certain companies can narrow down the search significantly. At Insider Monkey, we track more than 700 hedge funds, whose 13F filings we analyze as part of our small-cap strategy. Our research has shown that imitating a portfolio that includes the 15 most popular small-cap stocks among hedge funds can outperform the market by as much as 95 basis points per month on average (see more details here).

Hadrian/Shutterstock.com

Hadrian/Shutterstock.com

General Motors Company (NYSE:GM) is slightly up so far this year. However, it offers healthy dividend yield of 4.3%. The stock accounted for 4.34% of Harris Associates’ portfolio. For the quarter ended on 30th September, 2016, the investment fund trimmed its holding of the stock by 6% to 68.49 million shares. The fund’s holding amounted to $2.19 billion. Of the hedge funds in our database, 65 funds held $3.29 billion worth of General Motors shares in their portfolio at the end of the June quarter, which equals to 7.5% of the outstanding shares. This number declined to 62 by the end of September. The head of the United Auto Workers union said that General Motor may employ nearly 2,000 of recently laid workers at other sites. The union president Dennis Williams said on Thursday that the wokers union is currently in negotiations with the automaker. To know more about the top auto exporting nations in the world, read our article here.

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Bank of America Corp (NYSE:BAC) stock gained about 25% in this year so far. Harris Associates boosted its holding of the stock by 3% during the quarter ended on 30th September, 2016 right before the large increases in BAC’s share price. The fund held $2.019 billion worth of Bank of America stock at the end of the quarter, forming 4% of its portfolio. Harris Associates  had 129 million shares of the company in its portfolio at the end of the period. Among the funds we track, 112 funds held $5.28 billion worth of Bank of America’s stock in aggregate at the end of September, having amassed 4.5% of its outstanding stock. Bank of America. The company stock hit its new 52 weeks high today despite receiving a ratings downgrade by Deutsche Bank last month. The DB analyst rated the stock Hold, down from Buy. The report cited the stock to be expensive at a P/E ratio of 11.

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