Oakmark Funds, an investment management firm, published its “Oakmark Select Fund” second quarter 2022 investor letter – a copy that can be downloaded here. The volatility in the first quarter accelerated in the second quarter over concerns about sustained inflation, the need for higher interest rates, and the consequently increased odds of a recession. As a result, stock prices fell considerably, and the Oakmark Select Fund (“Fund”) was not immune. The Oakmark Select Fund declined 16% during the second quarter, compared to the S&P 500 Index’s negative 16% return. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.
In its Q2 2022 investor letter, Oakmark Select Fund mentioned Amazon.com, Inc. (NASDAQ:AMZN) and explained its insights for the company. Founded in 1994, Amazon.com, Inc. (NASDAQ:AMZN) is a Seattle, Washington-based multinational technology company with a $1.2 trillion market capitalization. Amazon.com, Inc. (NASDAQ:AMZN) delivered a -26.36% return since the beginning of the year, while its 12-month returns are down by -31.51%. The stock closed at $122.77 per share on July 20, 2022.
Here is what Oakmark Select Fund has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2022 investor letter:
“Amazon (NASDAQ:AMZN) is the leading e-commerce and cloud-computing provider in the world. Two-thirds of U.S. households are Amazon Prime subscribers, and over half of all online product searches now start on Amazon. We believe the company’s strong customer loyalty and massive infrastructure are significant barriers to entry in a growing e-commerce market. Separately, Amazon Web Services (“AWS”) controls nearly half of the market in cloud computing. We believe AWS has become utility-like in nature and scale and we expect healthy growth moving forward as IT workloads continue moving to the cloud. More recently, concerns about rising investment spending have weighed on the stock-as they have in times past-providing us another opportunity to purchase shares at a very attractive price. At our purchase price and valuing AWS like its peers, an investor isn’t paying much of anything for the immensely valuable e-commerce franchise.”
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Our calculations show that Amazon.com, Inc. (NASDAQ:AMZN) ranks 1st on our list of the 30 Most Popular Stocks Among Hedge Funds. Amazon.com, Inc. (NASDAQ:AMZN) was in 271 hedge fund portfolios at the end of the second quarter of 2022, compared to 279 funds in the previous quarter. Amazon.com, Inc. (NASDAQ:AMZN) delivered a -20.28% return in the past 3 months.
In July 2022, we also shared another hedge fund’s views on Amazon.com, Inc. (NASDAQ:AMZN) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.
Disclosure: None. This article is originally published at Insider Monkey.
