Harris Associates, advising Oakmark Funds, has released the Oakmark Equity and Income Fund's investor letter for the fourth quarter of 2025. The fund's objective is to deliver returns while preserving and enhancing capital through a portfolio of U.S. equities and fixed-income securities. At the end of the quarter, the allocation stood at 60.0% in equities, 38.5% in fixed income, and 1.5% in cash.
The Fund's Investor Class outperformed the 60% S&P 500 / 40% Bloomberg U.S. Aggregate Bond Index both for the quarter and since its inception. The equity portion of the portfolio generated a gain of 5.08%, compared to the S&P 500 Index's 2.66% gain. The fixed income portfolio returned 1.35%, compared to the Bloomberg U.S. Aggregate Bond Index's 1.10% gain.
In the letter, the fund highlighted Alphabet Inc. (NASDAQ:GOOG) as a standout performer. Alphabet, the parent company of Google, closed at $336.31 per share on January 14, 2026. Its one-month return was 12.83%, and its shares gained 70.73% over the last 52 weeks. The company has a market capitalization of $4.06 trillion.
Regarding Alphabet Inc., the fund stated: "Alphabet Inc. (NASDAQ:GOOG) was the top contributor during the quarter. The U.S.-headquartered technology conglomerate’s stock price jumped after it delivered impressive third-quarter earnings. Search revenue growth beat consensus expectations as Google continues to see strong user engagement trends. Results were also ahead of expectations in the Cloud segment, and the outlook for this business remains robust given accelerating demand for AI compute. We continue to believe Alphabet is undervalued on a sum-of-the-parts basis and see potential for the company’s AI leadership to drive further upside across the portfolio."
Alphabet Inc. is in the 7th position on a list of 30 Most Popular Stocks Among Hedge Funds. According to database records, 186 hedge fund portfolios held Alphabet Inc. at the end of the third quarter of 2025, up from 178 in the previous quarter. In that third quarter, Alphabet Inc. achieved its first-ever $100 billion in revenue.