Oakmark Funds, advised by Harris Associates, released its “Oakmark Global Fund” second quarter 2025 investor letter. The fund underperformed its benchmark, the MSCI World Index (net), in the second quarter. The largest performance contributors were industrials and financials, at the sector level, while health care and energy detracted. In addition, you can check the top 5 holdings of the fund to know its best picks in 2025.
In its second quarter 2025 investor letter, Oakmark Global Fund highlighted stocks such as Molina Healthcare, Inc. (NYSE:MOH). Molina Healthcare, Inc. (NYSE:MOH) offers managed healthcare services that operate through Medicaid, Medicare, Marketplace, and Other segments. The one-month return of Molina Healthcare, Inc. (NYSE:MOH) was -25.12%, and its shares lost 28.76% of their value over the last 52 weeks. On July 14, 2025, Molina Healthcare, Inc. (NYSE:MOH) stock closed at $218.95 per share with a market capitalization of $11.867 billion.
Oakmark Global Fund stated the following regarding Molina Healthcare, Inc. (NYSE:MOH) in its second quarter 2025 investor letter:
“Molina Healthcare, Inc. (NYSE:MOH) is a leading managed care company. The company is the fourth largest player in managed Medicaid and has consistently delivered industry-leading margins historically. In our view, this is thanks to Molina Healthcare’s exceptional management team and culture of operational excellence. Moreover, we think Molina Healthcare has a long runway for growth given its small scale relative to peers and untapped opportunities in their Medicare and Marketplace business segments. Recently, the Medicaid industry has come under substantial pressure due to a challenging redetermination cycle and additional headwinds from legislation under the current administration. This provided the opportunity to, in our view, purchase shares in a best-in-class managed care company at depressed valuation on trough earnings.”
A doctor in scrubs shaking hands with a patient, representing the healthcare services provided to individuals and families.
Molina Healthcare, Inc. (NYSE:MOH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Molina Healthcare, Inc. (NYSE:MOH) at the end of the first quarter, which was 48 in the previous quarter. While we acknowledge the potential of MOH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
Story Continues
