Is it a Good Choice to Keep Your Ally Financial (ALLY) Stake?

Oakmark Funds, an investment management firm, published its “Oakmark Fund” second quarter 2022 investor letter – a copy that can be downloaded here.  The Oakmark Fund returned -17.8% during the second quarter, underperforming the S&P 500 Index’s return of -16.1%. In constructing portfolios for its clients, the fund seeks out companies that it believes are trading in the market at significant discounts to their underlying value. 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 Fund mentioned Ally Financial Inc. (NYSE:ALLY) and explained its insights for the company. Founded in 1919, Ally Financial Inc. (NYSE:ALLY) is a Detroit, Michigan-based bank holding company with a $10.9 billion market capitalization. Ally Financial Inc. (NYSE:ALLY) delivered a -28.84% return since the beginning of the year, while its 12-month returns are down by -35.49%. The stock closed at $33.88 per share on July 20, 2022.

Here is what Oakmark Fund has to say about Ally Financial Inc. (NYSE:ALLY) in its Q2 2022 investor letter:

“As for Ally Financial, fears of a recession drove the stock price down more than 20% for the period, but business fundamentals have remained strong and the shares now trade for just a mid-single-digit multiple of current earnings. We believe today’s price ignores the funding cost improvements and well-capitalized nature of Ally’s balance sheet. We continue to own both investments given their significant discounts to our estimates of business value.”

Investments, Finance

Investments, Finance

Our calculations show that Ally Financial Inc. (NYSE:ALLY) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Ally Financial Inc. (NYSE:ALLY) was in 49 hedge fund portfolios at the end of the second quarter of 2022, compared to 48 funds in the previous quarter. Ally Financial Inc. (NYSE:ALLY) delivered a -23.44% return in the past 3 months.

In June 2022, we published an article that includes Ally Financial Inc. (NYSE:ALLY) in 5 Affordable Blue Chip Stocks To Buy Now. 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.