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    Home»Funds»The Top Contributor of Longleaf Partners Small-Cap Fund
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    The Top Contributor of Longleaf Partners Small-Cap Fund

    October 25, 2024


    Longleaf Partners, managed by Southeastern Asset Management, released its “Small-Cap Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned 8.92% in the third quarter, outperforming the Russell 3000’s 6.23% return, but slightly trailing the more relevant Russell 2000’s 9.27% return. The portfolio achieved strong absolute returns in a volatile small-cap environment. For more information on the fund’s best picks in 2024, please check its top five holdings.

    Longleaf Partners Small-Cap Fund highlighted stocks like Oscar Health, Inc. (NYSE:OSCR) in the third quarter 2024 investor letter. Oscar Health, Inc. (NYSE:OSCR) is a health insurance company. The one-month return of Oscar Health, Inc. (NYSE:OSCR) was -18.06%, and its shares gained 254.64% of their value over the last 52 weeks. On October 24, 2024, Oscar Health, Inc. (NYSE:OSCR) stock closed at $17.20 per share with a market capitalization of $3.856 billion.

    Longleaf Partners Small-Cap Fund stated the following regarding Oscar Health, Inc. (NYSE:OSCR) in its Q3 2024 investor letter:

    “Oscar Health, Inc. (NYSE:OSCR) – Health insurance and software platform Oscar was the top contributor for the quarter. The company delivered another strong quarter, reporting over 40% growth and better-than-expected margins, continuing to progress toward its publicly stated goal of achieving 5% operating income margins. The company still has hidden non-earning assets with various regions at different stages of ramp-up, transitioning from investment mode in some areas to higher-margin operations in others. We view this as a long-term positive, highlighting the embedded long-term growth potential at Oscar. While the stock may experience near-term volatility driven by election-related news, we have taken advantage of that volatility by trimming and adding to our position over the past year. Regardless of political outcomes, we believe Oscar is becoming an indispensable part of the US healthcare system, delivering real value to consumers and reinforcing its role in the industry.”

    A close up of a patient and a healthcare professional engaging in conversation, showing the company’s commitment to patient care.

    Oscar Health, Inc. (NYSE:OSCR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Oscar Health, Inc. (NYSE:OSCR) at the end of the second quarter which was 40 in the previous quarter. Oscar Health, Inc. (NYSE:OSCR) generated total revenue of $2.2 billion in the second quarter of 2024, reflecting 46% year-over-year increase. While we acknowledge the potential of Oscar Health, Inc. (NYSE:OSCR) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.



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