Oakmark Funds, advised by Harris Associates, released its “Oakmark Select Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. The fund returned 14.61% in the fourth quarter compared to an 11.69 % return for the S&P 500 Index. For the calendar year, the fund returned 43.00% compared to 26.29% for the benchmark. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
In its Q4 2023 investor letter, Oakmark Select Fund featured stocks such as Paycom Software, Inc. (NYSE:PAYC). Headquartered in Oklahoma City, Oklahoma, Paycom Software, Inc. (NYSE:PAYC) is a cloud-based human capital management solution provider. On January 8, 2024, Paycom Software, Inc. (NYSE:PAYC) stock closed at $204.14 per share. One-month return of Paycom Software, Inc. (NYSE:PAYC) was 7.76%, and its shares lost 31.57% of their value over the last 52 weeks. Paycom Software, Inc. (NYSE:PAYC) has a market capitalization of $11.779 billion.
In its fourth quarter 2023 investor letter, Oakmark Select Fund stated the following regarding Paycom Software, Inc. (NYSE:PAYC):
“Paycom Software, Inc. (NYSE:PAYC) is an Oklahoma City-based payroll and human capital management software company led by founder and CEO Chad Richison. For years, Paycom has traded at a premium multiple thanks to its rare combination of fast growth and high profit margins. Under Mr. Richison’s leadership, Paycom has grown revenue at more than 30% per year for the last decade and currently produces high-20s operating profit margins. Recently, though, an operational misstep related to the rollout of a new product caused revenue growth to slow and sent the stock down 40%. Paycom now trades near its all-time low revenue multiple and at a discount to the broader software industry. We believe the recent operational issue will prove temporary and that Paycom’s superior profitability and favorable long-term growth prospects justify a premium valuation relative to industry peers. We view today’s discount as an opportunity to invest in a great company at a reasonable price.”
A close-up of two software engineers typing away at laptops in a modern, well-lit office.
Paycom Software, Inc. (NYSE:PAYC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held Paycom Software, Inc. (NYSE:PAYC) at the end of third quarter which was 40 in the previous quarter.
We discussed Paycom Software, Inc. (NYSE:PAYC) in another article and shared the list of best tech stocks to buy on the dip. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
