Oakmark Funds, advised by Harris Associates, released its “Oakmark Equity and Income Fund” Q4 2025 investor letter. Oakmark Equity and Income Fund’s objective is to deliver returns while preserving and enhancing capital. A copy of the letter can be downloaded here. The portfolio consists of US equities and fixed-income securities. The allocation was 56.1% in equities, 40.2% in fixed income, and 3.7% cash. The Fund (Investor Class) underperformed the 60% S&P 500 / 40% Bloomberg U.S. Aggregate Bond Index in the quarter and has outperformed since its inception. The equity portion of the portfolio generated -5.16% compared to -4.33% for the S&P 500 Index. The fixed income portfolio returned 0.09% compared to the Bloomberg U.S. Aggregate Bond Index’s 0.05% gain. In addition, you can check the Fund’s top five holdings to determine its best picks for 2026.
In its first-quarter 2026 investor letter, Oakmark Equity and Income Fund highlighted Centene Corporation (NYSE:CNC) as a new addition to its holdings. Centene Corporation (NYSE:CNC) is a US-based healthcare enterprise that offers services to under-insured and uninsured families and commercial organizations. On April 13, 2026, Centene Corporation (NYSE:CNC) closed at $37.47 per share. One-month return of Centene Corporation (NYSE:CNC) was 8.01%, and its shares lost 39.40% over the past 52 weeks. Centene Corporation (NYSE:CNC) has a market capitalization of $18.43 billion.
Oakmark Equity and Income Fund stated the following regarding Centene Corporation (NYSE:CNC) in its Q1 2026 investor letter:
“Centene Corporation (NYSE:CNC) is a managed care organization focused on government sponsored healthcare programs across the United States. The company is the industry leader in government managed care, holding number one market share in Managed Medicaid and the ACA Marketplace. We believe healthcare cost inflation combined with a continued trend toward states outsourcing the management of their Medicaid programs supports an attractive growth outlook for Centene. We also believe competitive dynamics are favorable, as regulatory complexity creates barriers to entry and large players like Centene benefit from economies of scale. The Man aged Medicaid and Health Exchange industries are currently facing profitability headwinds due to a spike in healthcare cost inflation and unfavorable changes in state and federal policies. In time, we believe pricing in both Managed Medicaid and Health Exchanges will catch up to cost inflation and allow the industry to recoup lost margin. We think that this will lead to a meaningful rebound in earnings for Centene. We see the market’s focus on short-term earnings as creating an opportunity to purchase shares in Centene at a discount to our estimate of intrinsic value.”
