Oakmark Funds, an investment management firm, published its “Oakmark Global Select Fund” first quarter 2021 investor letter – a copy of which can be seen here. A return of 10.87% was reported by the fund for the Q1 of 2021, outperforming its MSCI World benchmark that delivered a 4.92% return for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Oakmark Global Select Fund, in their Q1 2021 investor letter, mentioned Daimler AG (NYSE: DMLRY) and shared their insights on the company. Daimler AG is a Stuttgart, Germany-based automotive corporation that currently has a $96.2 billion market capitalization. Since the beginning of the year, DMLRY delivered a 27.62% return, extending its 12-month gains to 199.60%. As of April 13, 2021, the stock closed at $22.60 per share.
Here is what Oakmark Global Select Fund has to say about Daimler AG in their Q1 2021 investor letter:
“Daimler AG was a top contributor for the first quarter as the German automotive manufacturer’s share price soared on the announcement it would spin off a majority stake in Daimler Truck. In our view, this is momentous news that represents fundamental change by establishing two distinct companies—one, a pure-play premium car company, and the other, a global leader in trucks and buses. This transition should lead to increased accountability, allow for more agile decision-making and unlock value for shareholders. In addition to this announcement, Daimler released its full-year 2020 earnings report and the results were well above our and consensus expectations. Adjusted earnings improved dramatically in the fourth quarter and management was able to convert this into cash. As a result, the company outperformed expectations by generating more than EUR 8 billion of free cash flow. Management indicated that there would likely be “significant growth” in unit sales and that Mercedes-Benz would hit earnings margins of 8-10% in 2021. We anticipate that the global vehicle manufacturer will continue to do well throughout the year, thanks to successful cost discipline, ongoing improvement in underlying demand, and important product launches of both internal combustion engine and battery electric vehicles. We believe Daimler’s management team is executing well and demonstrating strong commitment to shareholder value creation.”
Our calculations show that Daimler AG (NYSE: DMLRY) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. DMLRY delivered a decent 29.66% return in the past 3 months.
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