Oakmark Funds, advised by Harris Associates, released its “Oakmark Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund’s investor class returned 1.14% in the first quarter, compared to a -4.27% return for the S&P 500 Index. The fund has returned 12.76% since its inception compared to the index return of 10.44% over the same period. The largest contributors to the fund for the quarter were financials and consumer staples while consumer discretionary and communication services detracted. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its first quarter 2025 investor letter, Oakmark Fund emphasized stocks such as Marathon Petroleum Corporation (NYSE:MPC). Marathon Petroleum Corporation (NYSE:MPC) is an integrated downstream energy company that operates through Refining & Marketing, and Midstream segments. The one-month return of Marathon Petroleum Corporation (NYSE:MPC) was -18.28%, and its shares lost 39.63% of their value over the last 52 weeks. On April 15, 2025, Marathon Petroleum Corporation (NYSE:MPC) stock closed at $122.23 per share with a market capitalization of $38.078 billion.
Oakmark Fund stated the following regarding Marathon Petroleum Corporation (NYSE:MPC) in its Q1 2025 investor letter:
“Marathon Petroleum Corporation (NYSE:MPC) is an integrated downstream energy company that refines, markets and transports petroleum products. Marathon commands the largest refining system in the United States with operations in attractive regions, which has provided meaningful cost advantages for the company and significant barriers to entry for competitors. In addition, we think Marathon’s midstream business is an attractive asset thanks to its high market share in one of the most prolific gas fields in the world, which provides stability to the company’s cash flows. Lastly, we appreciate management’s focus on returns on invested capital and willingness to return capital to shareholders. Over the last year, refining industry margins have come under pressure due to a global wave of new supply during a period of soft demand. We believe industry margins have fallen below sustainable levels and that, in the long run, supply and demand will return to balance which should lead to higher refining margins for Marathon. Today’s short-term imbalance provided the opportunity to purchase shares at an attractive valuation relative to both current and mid-cycle earnings.”
An oil pipeline stretching for miles, signifying the transportation of fuels for the market.
Marathon Petroleum Corporation (NYSE:MPC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held Marathon Petroleum Corporation (NYSE:MPC) at the end of the fourth quarter which was 39 in the previous quarter. While we acknowledge the potential of Marathon Petroleum Corporation (NYSE:MPC) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
We covered Marathon Petroleum Corporation (NYSE:MPC) in another article, where we shared the list of best oil stocks to invest in according to billionaires.. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
Hedge Fund Resource Center