Here’s Why Oakmark Equity and Income Fund Added Molina Healthcare (MOH) to its Portfolio

2 days ago 5

Soumya Eswaran

Thu, Apr 17, 2025, 5:13 AM 3 min read

Oakmark Funds, advised by Harris Associates, released its “Oakmark Equity and Income Fund” Q1 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. The fund’s capitalist people delivered 0.91% during the 4th compared to -1.45% returns for the 60% S&P 500 / 40% Bloomberg U.S. Aggregate Bond Index. The equity portfolio returned -0.25% successful the quarter, compared to -4.27% for the S&P 500 Index. The fixed-income portfolio returned 2.91% compared to 2.78% for the Bloomberg U.S. Aggregate Bond Index. The money has allocated 58.1% successful equities, 41.1% successful fixed income, and 0.8% in cash. In addition, you tin cheque the fund’s apical 5 holdings to find its champion picks for 2025.

In its first-quarter 2025 capitalist letter, Oakmark Equity and Income Fund highlighted stocks specified arsenic Molina Healthcare, Inc. (NYSE:MOH). Molina Healthcare, Inc. (NYSE:MOH) offers managed healthcare services that run done Medicaid, Medicare, Marketplace, and Other segments. The one-month instrumentality of Molina Healthcare, Inc. (NYSE:MOH) was 5.56%, and its shares mislaid 7.63% of their worth implicit the past 52 weeks. On April 16, 2025, Molina Healthcare, Inc. (NYSE:MOH) banal closed astatine $332.38 per stock with a marketplace capitalization of $18.181 billion.

Oakmark Equity and Income Fund stated the pursuing regarding Molina Healthcare, Inc. (NYSE:MOH) successful its Q1 2025 capitalist letter:

"Molina Healthcare, Inc. (NYSE:MOH) is simply a starring managed attraction company. Molina is the 4th largest subordinate successful managed Medicaid but has consistently delivered industry-leading maturation and margins. In our view, this is acknowledgment to the company’s exceptional absorption squad and civilization of operational excellence. We deliberation Molina has a agelong runway for maturation via continued stock gains successful Medicaid and untapped opportunities successful their Medicare and Marketplace concern segments. Recently, fundamentals person been pressured by an unprecedented redeterminations rhythm successful Medicaid, and valuations person compressed owed to uncertainty astir argumentation changes successful a caller governmental administration. We judge net unit from redeterminations is impermanent and that immoderate Medicaid argumentation changes volition beryllium manageable, providing america an accidental to acquisition shares astatine a meaningful discount to intrinsic value."

Molina Healthcare, Inc. (MOH) Rallies Despite Tariff Worries – Jim Cramer Weighs In

A doc successful scrubs shaking hands with a patient, representing the healthcare services provided to individuals and families.

Molina Healthcare, Inc. (NYSE:MOH) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge money portfolios held Molina Healthcare, Inc. (NYSE:MOH) astatine the extremity of the 4th fourth which was 37 successful the erstwhile quarter. While we admit the imaginable of Molina Healthcare, Inc. (NYSE:MOH) arsenic an investment, our condemnation lies successful the content that AI stocks clasp greater committedness for delivering higher returns, and doing truthful wrong a shorter timeframe. If you are looking for an AI banal that is arsenic promising arsenic NVIDIA but that trades astatine little than 5 times its earnings, cheque retired our study astir the cheapest AI stock.

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