Here’s a Good Reason to Invest in Willis Towers Watson (WTW)

Oakmark Funds, an investment management firm, published its “Oakmark Fund” fourth quarter 2021 investor letter – a copy of which can be seen here.  A return of 4.7% was reported by the fund in the fourth quarter of 2021, compared to the 11% gain of the S&P 500 Index for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Oakmark Fund, in its Q4 2021 investor letter, mentioned Willis Towers Watson Public Limited Company (NASDAQ: WTW) and discussed its stance on the firm. Willis Towers Watson Public Limited Company is a London, United Kingdom-based multinational risk management, insurance brokerage, and advisory company with a $27.7 billion market capitalization. WTW delivered a -2.69% return since the beginning of the year, while its 12-month returns are up by 13.87%. The stock closed at $222.99 per share on January 27, 2022.

Here is what Oakmark Fund has to say about Willis Towers Watson Public Limited Company in its Q4 2021 investor letter:

“Willis Towers Watson is a global leader in advisory and risk broking services. We invested in the company in the wake of its cancelled business combination with Aon. Under the leadership of a new CEO and a reconstituted board of directors, we believe Willis has an opportunity to create significant shareholder value. Specifically, management sees a path toward mid-single-digit or greater organic revenue growth, several hundred basis points of operating margin improvement, and higher free cash flow conversion over the next few years. In addition, the company is in the process of repurchasing several billion dollars of stock. The company also has a new COO, a new CFO and a new head of transformation in place to oversee its operational initiatives, including common global platforms, “right-shoring” of operations, real estate rationalization and technology modernization. If the turnaround is successful, Willis should warrant a meaningfully higher multiple that is more in line with other leading peers.”

Source: pexels

Our calculations show that Willis Towers Watson Public Limited Company (NASDAQ: WTW) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. WTW delivered a -4.62% return in the past 3 months.

You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.