Paycom Software (PAYC) Fell Along with Peers

Oakmark Funds, advised by Harris Associates, released its “Oakmark Select Fund” fourth-quarter 2025 investor letter. Oakmark Select Fund is a non-diversified fund that aims to deliver capital appreciation by investing in mid and large-cap US companies. A copy of the letter can be downloaded here. In the quarter, the fund (investor class) outperformed the S&P 500 Index, returning 8.42% vs. 2.66% for the index. Communication services and financials were the top contributors at the sector level, while industrials detracted from the performance. In addition, you can check the Fund’s top five holdings to determine its best picks for 2025.

In its fourth-quarter 2025 investor letter, Oakmark Select Fund highlighted stocks such as Paycom Software, Inc. (NYSE:PAYC). Paycom Software, Inc. (NYSE:PAYC) is a cloud-based human capital management solution provider. On January 13, 2026, Paycom Software, Inc. (NYSE:PAYC) stock closed at $157.50 per share. One-month return of Paycom Software, Inc. (NYSE:PAYC) was -5.67%, and its shares lost 23.30% of their value over the last 52 weeks. Paycom Software, Inc. (NYSE:PAYC) has a market capitalization of $8.86 billion.

Oakmark Select Fund stated the following regarding Paycom Software, Inc. (NYSE:PAYC) in its fourth quarter 2025 investor letter:

“Paycom Software, Inc. (NYSE:PAYC) was the top detractor during the quarter. The U.S.-headquartered human resources and employment services company’s stock price declined alongside peers due to broad underperformance in the application software sector. We continue to believe Paycom has a long runway for future growth and that system-of-record software companies like Paycom will not be replaced by AI. We appreciate management’s focus on ramping share repurchases, which we believe will add significant per-share value at today’s stock price.”

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Paycom Software, Inc. (NYSE:PAYC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 35 hedge fund portfolios held Paycom Software, Inc. (NYSE:PAYC) at the end of the third quarter, up from 34 in the previous quarter. In Q3 2025, Paycom Software, Inc. (NYSE:PAYC) delivered strong results with total revenues reaching $493 million marking an increase of 9.1% year over year. While we acknowledge the risk and potential of Paycom Software, Inc. (NYSE:PAYC) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Paycom Software, Inc. (NYSE:PAYC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Paycom Software, Inc. (NYSE:PAYC) and shared the list of oversold fundamentally strong stocks to buy. In addition, please check out our hedge fund investor letters Q4 2025 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.