Oakmark Funds, advised by Harris Associates, released its “Oakmark Global Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund’s investor class returned 4.39% in the quarter compared to a -1.79% return for the MSCI World Index (net). The fund generated a 9.10% return since its inception compared to the index’s 6.21% return over the same period. The largest contributors at the sector level were financials and health care, while the largest detractors were communication services and materials. In addition, you can check the top 5 holdings of the fund to know its best picks in 2025.

In its first-quarter 2025 investor letter, Oakmark Global Fund highlighted stocks such as Airbnb, Inc. (NASDAQ:ABNB). Headquartered in San Francisco, California, Airbnb, Inc. (NASDAQ:ABNB) operates a platform that connects hosts and guests. The one-month return of Airbnb, Inc. (NASDAQ:ABNB) was -10.60%, and its shares lost 28.88% of their value over the last 52 weeks. On April 16, 2025, Airbnb, Inc. (NASDAQ:ABNB) stock closed at $112.64 per share with a market capitalization of $69.988 billion.

Oakmark Global Fund stated the following regarding Airbnb, Inc. (NASDAQ:ABNB) in its Q1 2025 investor letter:

"Airbnb, Inc. (NASDAQ:ABNB) is an online marketplace to list, discover and book unique accommodations worldwide. The company benefits from a strong network effect between its guests and hosts. We believe there is a long growth runway as global travel is an attractive market, and alternative accommodations have been taking share. We anticipate Airbnb will drive further growth by creating more valuable services for both sides of its network. This includes the potential for paid placement, which has created significant economic value for comparable market places. In our view, management is aligned with shareholders and well qualified to lead Airbnb as the company attempts to capture these growth opportunities. Short-term concerns about the macro travel environment and declining margins stem ming from growth investments allowed us to purchase shares at a discount to our estimate of business value."

A vacation home luxury bedroom setup with stunning decor showing a desired getaway experience.

Airbnb, Inc. (NASDAQ:ABNB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 54 hedge fund portfolios held Airbnb, Inc. (NASDAQ:ABNB) at the end of the fourth quarter compared to 54 in the third quarter. Airbnb, Inc.’s (NASDAQ:ABNB) fourth quarter revenue increased 12% year-over-year to $2.5 billion. While we acknowledge the potential of Airbnb, Inc. (NASDAQ:ABNB) 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.

We covered Airbnb, Inc. (NASDAQ:ABNB) in another article, where we shared Nightview Capital's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 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.