Oakmark Equity and Income Fund's Top Contributor: Alphabet (GOOG)

Oakmark Funds, advised by Harris Associates, released its “Oakmark Equity and Income Fund” Q4 2025 investor letter. A copy of the letter can be downloaded here. Oakmark Equity and Income Fund’s objective is to deliver returns while preserving and enhancing capital. The portfolio consists of US equities and fixed-income securities.  The allocation was 60.0% in equities, 38.5% in fixed income, and 1.5% cash. The Fund (Investor Class) outperformed the 60% S&P 500 / 40% Bloomberg U.S. Aggregate Bond Index both in the quarter and since its inception. The equity portion of the portfolio generated a gain of 5.08% compared to 2.66% for the S&P 500 Index. The fixed income portfolio returned 1.35% compared to the Bloomberg U.S. Aggregate Bond Index’s 1.10% gain. In addition, you can check the Fund’s top five holdings to determine its best picks for 2025.

In its fourth-quarter 2025 investor letter, Oakmark Equity and Income Fund highlighted stocks such as Alphabet Inc. (NASDAQ:GOOG). Alphabet Inc. (NASDAQ:GOOG) stood out as the leading performer of the strategy in the quarter. Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services operating through Google Services, Google Cloud, and Other Bets segments. On January 14, 2026, Alphabet Inc. (NASDAQ:GOOG) stock closed at $336.31 per share. One-month return of Alphabet Inc. (NASDAQ:GOOG) was 12.83%, and its shares gained 70.73% of their value over the last 52 weeks. Alphabet Inc. (NASDAQ:GOOG) has a market capitalization of $4.06 trillion.

Oakmark Equity and Income Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its fourth quarter 2025 investor letter:

"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. (NASDAQ:GOOG) is in the 7th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 186 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the third quarter which was 178 in the previous quarter. In the third quarter of 2025, Alphabet Inc. (NASDAQ: GOOG) achieved its first-ever $100 billion in revenue. While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOG) 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.

In another article, we covered Alphabet Inc. (NASDAQ:GOOG) and shared the list of best long term growth stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.