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Oakmark Funds, advised by Harris Associates, released its “Oakmark Fund” first-quarter 2026 investor letter. The objective of the fund is to deliver capital appreciation by investing in diverse large-cap US companies. A copy of the letter can be downloaded here. In the quarter, the Fund (investor class) outperformed the S&P 500 Index, returning -2.47% vs. -4.33% for the index. 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 Fund highlighted Synchrony Financial (NYSE:SYF). Synchrony Financial (NYSE:SYF) is a US-based consumer financial services company that offers credit products and deposit products. On April 13, 2026, Synchrony Financial (NYSE:SYF) closed at $68.02 per share. One-month return of Synchrony Financial (NYSE:SYF) was 13.26%, and its shares gained 55.31% over the past 52 weeks. Synchrony Financial (NYSE:SYF) has a market capitalization of $26.58 billion.
Oakmark Fund stated the following regarding Synchrony Financial (NYSE:SYF) in its Q1 2026 investor letter:
“Synchrony Financial (NYSE:SYF) is the largest private-label credit card issuer in the United States. We believe private label credit card programs help retailers improve customer loyalty, while offering end consumers good value in the form of attractive rewards. In our view, Synchrony’s leading market position is driven by a competitive advantage built on irreplaceable proprietary customer data, which has allowed the company to both consistently win new retail partners and generate attractive returns on equity. Additionally, we are encouraged by management’s historical track record on capital allocation, which has resulted in the company repurchasing nearly 60% of shares outstanding over the past decade. We believe the market underapreciates the company’s earnings power and were pleased to purchase shares at a discount to our estimate of intrinsic value.”
Synchrony Financial (NYSE:SYF) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 55 hedge fund portfolios held Synchrony Financial (NYSE:SYF) at the end of the fourth quarter, compared to 56 in the previous quarter. While we acknowledge the potential of Synchrony Financial (NYSE:SYF) 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.