Oakmark Funds, an investment management firm, published its “Oakmark Global Fund” third quarter 2021 investor letter – a copy of which can be seen here. A return of -3.33% was reported by the fund in the third quarter of 2021, which compares to a small loss for the MSCI World Index and -1.1% for the Lipper Global Fund Index. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.
Oakmark Funds, in its Q3 2021 investor letter, mentioned CNH Industrial N.V. (NYSE: CNHI) and discussed its stance on the firm. CNH Industrial N.V. is a London, United Kingdom-based farm machinery and equipment company with a $23.9 billion market capitalization. CNHI delivered a 37.62% return since the beginning of the year, while its 12-month returns are up by 81.60%. The stock closed at $17.67 per share on November 5, 2021.
Here is what Oakmark Funds has to say about CNH Industrial N.V. in its Q3 2021 investor letter:
“CNH Industrial, like Lloyds, languished for most of 2020. The company’s most important division, agricultural equipment, began to recover strongly late in the year, and the share price responded accordingly.”
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Based on our calculations, CNH Industrial N.V. (NYSE: CNHI) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. CNHI was in 24 hedge fund portfolios at the end of the first half of 2021, compared to 23 funds in the previous quarter. CNH Industrial N.V. (NYSE: CNHI) delivered a 4.80% return in the past 3 months.
Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research has shown that hedge funds’ small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by 115 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.
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Disclosure: None. This article is originally published at Insider Monkey.
