Oakmark Funds, advised by Harris Associates, released its “Oakmark Fund” first-quarter 2026 investor letter. The objective of the fund is to deliver capital appreciation by investing in diverse 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 -2.47% vs. -4.33% for the index. In addition, you can check the Fund’s top five holdings to determine its best picks for 2026.
In its first-quarter 2026 investor letter, Oakmark Fund highlighted Adobe Inc. (NASDAQ:ADBE) as a new addition to the portfolio. Adobe Inc. (NASDAQ:ADBE) is a multinational technology company that offers creative, digital media, and document management products. On April 10, 2026, Adobe Inc. (NASDAQ:ADBE) closed at $240.11 per share. One-month return of Adobe Inc. (NASDAQ:ADBE) was -4.31%, and its shares lost 30.58% over the past 52 weeks. Adobe Inc. (NASDAQ:ADBE) has a market capitalization of $97.05 billion.
Oakmark Fund stated the following regarding Adobe Inc. (NASDAQ:ADBE) in its Q1 2026 investor letter:
“Adobe Inc. (NASDAQ:ADBE) is a leading cloud software vendor. Its industry-standard creative tools are deeply embedded in professional workflows, and its leading marketing software suite enables enterprises to deliver personalized consumer experiences across multiple channels. Adobe’s earnings multiple has compressed over the last two years, largely driven by investor concerns over potential AI headwinds. We believe Adobe’s AI strategy is sound: it is partnering with leading AI models to complement its own in-house models and enhance the value of its creative software, and it is embedding agentic AI tools across its product portfolio to help improve user productivity. We believe that the company retains durable competitive advantages across multiple growing markets, and that recent skepticism has created an opportunity to invest in this highly profitable and well managed category leader at a meaningful discount to our estimate of intrinsic value.”
Adobe Inc. (NASDAQ:ADBE) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 91 hedge fund portfolios held Adobe Inc. (NASDAQ:ADBE) at the end of the fourth quarter, up from 88 in the previous quarter. While we acknowledge the risk and potential of Adobe Inc. (NASDAQ:ADBE) 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 Adobe Inc. (NASDAQ:ADBE) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Adobe Inc. (NASDAQ:ADBE) and shared Patient Opportunity Equity Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
Disclosure: None. This article is originally published at Insider Monkey.
