Tracking William Nygren’s Harris Associates Portfolio – Q1 2024 Update (MUTF:OAKMX)

This article is part of a series that provides an ongoing analysis of the changes made to Harris Associates 13F stock portfolio on a quarterly basis. It is based on Harris Associates’ regulatory 13F Form filed on 5/15/2024. William Nygren’s 13F portfolio value increased from $58.03B to $61.82B this quarter. The portfolio is diversified with recent 13F reports showing around 200 positions. There are 61 securities that are significantly large (more than ~0.5% of the portfolio each) and they are the focus of this article. The largest five stakes are Alphabet, IQVIA, Capital One Financial, Fiserv, and Intercontinental Exchange. They add up to ~20% of the portfolio. Please visit our Tracking William Nygren’s Harris Associates Portfolio series to get an idea of their investment philosophy and our last update for the fund’s moves during Q4 2023.

Harris Associates currently has ~$110B under management. Their flagship mutual funds are the Oakmark Fund (MUTF:OAKMX) incepted in 1991 and the Oakmark International (MUTF:OAKIX) incepted in 1992. Both funds have produced substantial alpha during their lifetimes: 12.96% annualized return compared to 10.51% for the S&P 500 index for OAKMX and 8.55% annualized return for OAKIX compared to 6.10% annualized return for the MSCI World ex-US Index. The other mutual funds in the group are Oakmark Select (OAKLX), Oakmark Equity and Income (OAKBX), Oakmark Global (OAKGX), Oakmark Global Select (OAKWX), and Oakmark International Small Cap (OAKEX).

Note: The top holdings in the Oakmark International Fund are not in the 13F report, as they are not 13F securities. The positions are BNP Paribas (OTCQX:BNPQF), Lloyds Banking Group (LYG), Bayer (OTCPK:BAYRY), Continental (OTCPK:CTTAF), Prudential (PUK), Mercedes-Benz Group, Kering SA (OTCPK:PPRUY), Fresenius (OTCPK:FSNUY), and Intesa Sanpaolo (OTCPK:ISNPY).

New Stakes:

Deere & Co. (DE): DE is a 2.03% of the portfolio position established this quarter at prices between ~$356 and ~$411. The stock currently trades at ~$375.

Kenvue Inc. (KVUE): The small 0.58% of the portfolio stake in KVUE was purchased this quarter at prices between $18.62 and $21.48 and the stock is now just below that range at $18.53.

Stake Increases:

IQVIA Holdings (IQV): The 4.15% IQV stake was built during Q3 2023 at prices between ~$197 and ~$232. There was a ~23% stake increase in the last quarter at prices between ~$177 and ~$233. The stock is now at ~$216. This quarter saw a minor ~4% increase.

Note: They control ~5.5% of the business.

Charter Communications (CHTR): CHTR is a 2.94% of the portfolio stake. It was established in 2015 when around 2M shares were purchased at prices between ~$150 and ~$190. Recent activity follows. There was a ~20% stake increase in H1 2021 at prices between ~$597 and ~$722. That was followed with a ~30% increase in Q1 2022 at prices between ~$545 and ~$648. Q2 2023 also saw a ~25% increase at prices between ~$320 and ~$367. The position was increased by 21% this quarter at prices between ~$276 and ~$392. The stock currently trades at ~$290.

ConocoPhillips (COP): COP is a 2.79% of the portfolio stake primarily built during H1 2023 at prices between ~$94 and ~$125. The stake was decreased by 10% in the next quarter at prices between ~$99 and ~$123. The stock currently trades at ~$111. There was a ~6% trimming in the last quarter while this quarter there was a similar increase.

Charles Schwab (SCHW): The 2.66% SCHW stake was built during H1 2023 at prices between ~$47 and ~$86. The position was increased by 19% this quarter at prices between $61.44 and $72.14. The stock is now at $73.34.

EOG Resources (EOG): The 1.68% EOG position saw a ~45% increase in the two quarters through Q2 2023 at prices between ~$101 and ~$136. There was a ~17% trimming in the last two quarters. The stake was increased by 12% this quarter at prices between ~$109 and ~$127. The stock currently trades at ~$122.

Warner Bros. Discovery (WBD): WBD is a 1.47% of the portfolio position purchased during Q3 2022 at prices between ~$11.30 and ~$17.50 and the stock currently trades well below that range at $7.18. Q4 2022 also saw a ~10% stake increase. There was marginal trimming during Q1 2023 and a ~7% increase last quarter. Q3 2023 also saw a ~16% increase at prices between $10.66 and $14.47. The position was increased by another 31% this quarter at prices between $8.11 and $11.66.

APA Corporation (APA), Altria Group (MO), Bank of New York Mellon (BK), Baxter International (BAX), CVS Health (CVS), Centene Corp (CNC), Comcast Corp (CMCSA), Citigroup Inc. (C), Corteva (CTVA), First Citizens BancShares (FCNCA), Kroger Co (KR), Lithia Motors (LAD), Magna Intl. (MGA), Paycom Software (PAYC), Phillips 66 (PSX), Reinsurance Group of America (RGA), State Street Corp. (STT), and Truist Financial (TFC): These positions (less than ~2.25% of the portfolio each) were increased this quarter.

Stake Decreases:

Alphabet Inc. (GOOG): GOOG is currently the largest 13F position by far at 5.25% of the portfolio. The bulk of the stake was purchased in 2014 at prices between ~$26 and ~$30. Next year also saw a ~20% stake increase at prices between ~$25 and ~$38. The two years through Q4 2020 saw a ~28% selling at prices between ~$53 and ~$91. The last three quarters saw a ~22% selling at prices between ~$117 and ~$143. The stock currently trades at ~$180. There was a ~5% trimming this quarter.

Capital One Financial (COF): COF is a large (top three) 3.87% of the portfolio stake built during the four quarters through Q2 2023 at prices between ~$85 and ~$122, and it is now at ~$137. The stake was decreased by 15% this quarter at prices between ~$124 and ~$148.

Fiserv, Inc. (FI): FI is a 3.70% of the portfolio position, primarily built during 2021 at prices between ~$96 and ~$111. The five quarters through Q2 2023 saw a ~40% selling at prices between ~$89 and ~$126. The stock currently trades at ~$150. There was a ~5% trimming this quarter.

Intercontinental Exchange (ICE): The 3.36% ICE stake saw a whopping 170% increase during Q4 2022 at prices between ~$90 and ~$110. The next two quarters saw another ~50% increase at prices between ~$95 and ~$113. The stock currently trades at ~$138. The last two quarters also saw minor increases. There was a ~5% trimming this quarter.

Bank of America (BAC): BAC was a minutely small position in their first 13F filing in 1999. It became a significant part of the portfolio in 2011. The 2012 to 2015 timeframe saw the stake built from 9.8M shares to 138M shares at prices between ~$6 and ~$18. Recent activity follows. Q3 2022 saw a ~15% selling and that was followed with marginal trimming in the next quarter. There was a ~20% increase during Q1 2023 at prices between ~$27 and ~$37. The stock is now at $39.49, and the stake is at ~3% of the portfolio. There was a ~9% trimming this quarter.

CNH Industrial (CNH): CNH is a ~3% of the portfolio position, purchased in Q4 2020 at prices between $7.75 and $13. The five quarters through Q1 2022 saw a ~55% selling at prices between ~$11 and ~$17. There was a ~20% stake increase during Q2 2023 at prices between ~$12.80 and ~$14.60. The last quarter saw another ~30% stake increase at prices between ~$9.80 and ~$12.20. The stake was decreased by 10% this quarter at prices between $10.97 and $12.44. The stock currently trades at $10.07.

Note: They control ~11% of the business.

American International Group (AIG): The 2.74% AIG position saw a ~45% stake increase during Q2 2023 at prices between ~$50 and ~$57. The stock currently trades at $74.89. There was a ~5% trimming this quarter.

General Motors (GM): GM is a 2.10% of the portfolio position. It is a very long-term stake. The original position was small in 2007, and it was disposed the following year. In 2013, a huge ~70M share stake was established at prices between $27 and $41. The position size peaked at ~81M shares in 2015. The stake was sold down by ~25% in the 2016-2019 timeframe at prices between $28 and $46. That was followed with a ~45% reduction in the five quarters through Q2 2021 at prices between ~$18 and ~$64. There was a ~25% stake increase in Q1 2022 at prices between ~$40 and ~$66. There was an ~8% trimming during Q3 2023. The last two quarters saw only minor adjustments. The stock currently trades at $47.72.

CBRE Group (CBRE): The 2.38% CBRE stake saw a ~20% increase during H1 2022 at prices between ~$70 and ~$109. H2 2022 also saw a similar increase at prices between ~$67.50 and ~$88. The stock currently trades at $90.38. The last three quarters saw minor increases, while this quarter there was a ~5% trimming.

Note: They control ~5.2% of the business.

Wells Fargo (WFC): The 2.13% WFC stake saw a ~45% increase during Q3 2022 at prices between ~$39 and ~$46. It now goes for $58.10. Q2 2023 saw a ~6% increase while the last three quarters saw minor trimming.

Willis Towers Watson (WTW): The 1.77% WTW stake saw a ~20% increase during Q3 2023 at prices between ~$196 and ~$234. The stock is now at ~$262. There was minor selling in the last two quarters.

KKR & Company (KKR): KKR is a 1.74% of the portfolio stake that saw a ~115% increase during Q4 2022 at prices between ~$43 and ~$57.50. Q2 2023 saw a ~9% stake increase while in the next quarter there was a similar trimming. There was a ~23% selling in the last quarter at prices between ~$54 and ~$85. The stake was decreased by 49% this quarter at prices between ~$80 and ~$102. The stock currently trades at ~$109.

Salesforce.com (CRM): CRM is a 1.52% stake that saw a roughly two-thirds increase during Q4 2022 at prices between ~$128 and ~$191. There was a ~35% selling during Q2 2023 at prices between ~$189 and ~$223. The next quarter also saw a ~7% trimming. There was a ~16% selling in the last quarter at prices between ~$196 and ~$267. The stake was decreased by 21% this quarter at prices between ~$251 and ~$317. It is now at ~$245.

Amazon.com (AMZN): The 1.45% of the portfolio AMZN stake was built during the five quarters through Q1 2023 at prices between ~$85 and ~$170. There was a one-third selling in the next quarter at prices between ~$98 and ~$130. Q3 2023 saw another one-third reduction at prices between ~$126 and ~$145. There was a ~25% reduction in the last quarter at prices between ~$120 and ~$154. The stake was decreased by 37% this quarter at prices between ~$145 and ~$180. The stock currently trades at ~$189.

Oracle Corp. (ORCL): The ~1% ORCL position saw a ~90% increase during Q4 2022 at prices between ~$61 and ~$84. There was a ~37% selling during Q2 2023 at prices between ~$93 and ~$127. That was followed by another ~30% reduction in the next quarter at prices between ~$104 and ~$126. The last quarter saw similar selling at prices between ~$100 and ~$117. This quarter also saw a ~13% trimming. The stock currently trades at ~$142.

Cisco Systems (CSCO): The 0.84% of the portfolio stake in CSCO was established during Q3 2023 at prices between ~$50 and ~$57. The stock currently trades below that range at $47.29. This quarter saw a ~5% trimming.

American Express (AXP), Ally Financial (ALLY), Agilent Tech. (A), BlackRock, Inc. (BLK), BorgWarner (BWA), Corebridge Financial (CRBG), Danaher Corp. (DHR), Fortune Brands (FBIN), Global Payments (GPN), Goldman Sachs (GS), HCA Healthcare (HCA), Hilton Worldwide (HLT), Interpublic Group (IPG), Liberty Broadband (LBRDK), Masco Corp. (MAS), Open Text Corp. (OTEX), Ryanair Holdings (RYAAY), TE Connectivity (TEL), and THOR Industries (THO): These small (less than ~1.5% of the portfolio each) stakes were decreased this quarter.

Note: Although the position sizes relative to the total portfolio value are very small, they have significant ownership stakes in Ally Financial (ALLY), Envista (NVST), Liberty Global (LBTYK), Open Text Corp., and Reinsurance Group of America (RGA).

Below is a spreadsheet that shows the changes to William Nygren’s Harris Associates 13F portfolio holdings as of Q1 2024:

Source: John Vincent. Data constructed from Harris Associates’ 13F filings for Q4 2023 and Q1 2024.