Oakmark Funds, advised by Harris Associates, released its “Oakmark Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. The fund returned -1.31% in the third quarter, 15.91% calendar year to date, and 27.84% for the fiscal year. The S&P 500 Total Return Index delivered -3.27%, 13.07%, and 21.62%, respectively, for the same periods. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Oakmark Fund highlighted stocks like Phillips 66 (NYSE:PSX) in the third quarter 2023 investor letter. Headquartered in Houston, Texas, Phillips 66 (NYSE:PSX) is an energy manufacturing and logistics company. On October 11, 2023, Phillips 66 (NYSE:PSX) stock closed at $112.13 per share. One-month return of Phillips 66 (NYSE:PSX) was -8.82%, and its shares gained 15.72% of their value over the last 52 weeks. Phillips 66 (NYSE:PSX) has a market capitalization of $49.93 billion.
Oakmark Fund made the following comment about Phillips 66 (NYSE:PSX) in its Q3 2023 investor letter:
“Phillips 66 (NYSE:PSX) is an integrated downstream energy company that operates refineries, pipelines, chemical manufacturing facilities and retail fuel stations. Like most U.S.-based oil refiners, Phillips 66 is currently enjoying abnormally high margins thanks to today’s historically tight market for refined products. Given the market’s concern that current refining margins are unsustainable, Phillips 66 trades for just 7x this year’s EPS. However, unlike other refiners, the majority of Phillips 66’s intrinsic value comes from its non-refining business segments, providing a more stable base of cash flow. Even if refining margins eventually return to historical average levels, we believe we are paying a single-digit multiple of normalized earnings for a collection of advantaged midstream and downstream assets. We think this is an attractive price for a solid business where management is returning the vast majority of free cash flow to shareholders.”
A wide shot of a sprawling natural gas pipeline system, representing the company’s energy infrastructure. Editorial photo for a financial news article. 8k. –ar 16:9
Phillips 66 (NYSE:PSX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Phillips 66 (NYSE:PSX) at the end of the second quarter, which was 37 in the previous quarter.
We discussed Phillips 66 (NYSE:PSX) in another article and shared the list of most innovative companies in the world in 2023. In addition, please check out our hedge fund investor letters Q3 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.
