Harris Associates' Q2 2024 Commentary: Concentrated and Large Value Strategies

Harris Associates U.S. Concentrated Strategy Q2 2024 Commentary

New positions in Centene and First Citizens BancShares were initiated, while American Express, Bank of America, and EOG Resources were eliminated. U.S. equities finished higher quarter-over-quarter. Outsized returns from the Information Technology and Communication Services sectors drove market performance with Nvidia (NVDA), Apple (AAPL) and Alphabet (GOOG, GOOGL) each increasing over 20% during the three months. Utilities also posted positive returns as the sector emerged as the latest potential beneficiary of the rise of artificial intelligence. More cyclical sectors, including Financials and Industrials, were the largest detractors from performance, despite only declining approximately 2% and 3%, respectively. The portfolio's return was -6.49% (net) for the reporting period. This compares to the S&P 500 (SP500, SPX) Total Return Index that returned 4.28% for the same period. We initiated the following position(s) during the period: We eliminated the following position(s) during the period: Whereas investors attempt to determine the price of an asset using fundamental analysis, then buy low and sell high, a trader uses analysis to predict price movement. Although traders have greatly influenced current market conditions, we believe the result has been more opportunity for investors. Though we are frustrated with our recent performance, based on today's valuations, we remain fully confident on what we can deliver in terms of future performance for our clients. Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.

Harris Associates U.S. Large Value Strategy Q2 2024 Commentary

New positions in Corebridge Financial and Nasdaq were initiated, while positions in Danaher and Oracle were eliminated, focusing on undervalued opportunities and strategic growth. U.S. equities finished higher quarter-over-quarter. Outsized returns from the Information Technology and Communication Services sectors drove market performance with Nvidia (NVDA), Apple (AAPL) and Alphabet (GOOG,GOOGL) each increasing over 20% during the three months. Utilities also posted positive returns as the sector emerged as the latest potential beneficiary of the rise of artificial intelligence. More cyclical sectors, including Financials and Industrials, were the largest detractors from performance, despite only declining approximately 2% and 3%, respectively. The portfolio's return was -4.11% (net) for the reporting period. This compares to the Russell 1000 Value Index that returned -2.17% for the same period. We initiated the following position(s) during the period: We eliminated the following position(s) during the period: Whereas investors attempt to determine the price of an asset using fundamental analysis, then buy low and sell high, a trader uses analysis to predict price movement. Although traders have greatly influenced current market conditions, we believe the result has been more opportunity for investors. Though we are frustrated with our recent performance, based on today's valuations, we remain fully confident on what we can deliver in terms of future performance for our clients. Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.