Harris Oakmark recently released its second-quarter 2026 investor letter for the “Oakmark Select Fund”. A copy of the letter can be downloaded here. Oakmark Select Fund is a non-diversified fund that aims to deliver capital appreciation by investing in mid- and large-cap US companies. In the quarter, the Fund (investor class) trailed the S&P 500 Index, returning 9.39% vs. 15.20 % for the index. At the sector level, health care and consumer staples contributed to performance, while information technology and energy detracted. Investors continued to favor companies perceived to be direct beneficiaries of AI spending in a narrow leadership environment. In this landscape, the firm remains focused on owning undervalued companies rather than chasing the market’s most popular themes. In addition, you can check the Fund’s top five holdings to determine its best picks for 2026.
In its Q2 2026 investor letter, Oakmark Select Fund highlighted Centene Corporation (NYSE:CNC) as a leading performance contributor. Centene Corporation (NYSE:CNC) is a US-based healthcare enterprise that offers services to underinsured and uninsured families and commercial organizations. On July 13, 2026, Centene Corporation (NYSE:CNC) closed at $68.29 per share, reflecting a market capitalization of $33.72 billion. Centene Corporation (NYSE:CNC) posted a one-month return of 11.24%, while its shares gained 127.63% over the past 52 weeks.
Oakmark Select Fund stated the following regarding Centene Corporation (NYSE:CNC) in its Q2 2026 investor update:
“Centene Corporation (NYSE:CNC) was the top contributor during the quarter. Shares of the U.S.-headquartered managed care company rallied sharply after it reported better-than-expected first-quarter results. Managed care industry profitability has been under pressure over the last 2 years amidst an unprecedented spike in medical cost trend. However, there are signs that the cost trend is now stabilizing or even decelerating in certain utilization categories. We expect easing medical costs combined with improving reimbursement rates and Centene’s own expense initiatives to drive a meaningful earnings recovery in the coming years. Beyond this cyclical recovery, we believe Centene remains well positioned for growth as a leader in government-managed care.”
Centene Corporation (NYSE:CNC) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 72 hedge fund portfolios held Centene Corporation (NYSE:CNC) at the end of the first quarter, compared to 78 in the previous quarter. While we acknowledge the risk and potential of Centene Corporation (NYSE:CNC) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Centene Corporation (NYSE:CNC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Centene Corporation (NYSE:CNC) and shared billionaire Cliff Asness’ top healthcare stock picks. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
Disclosure: None. This article is originally published at Insider Monkey.
