Last year’s losing market created a new host of buying opportunities for long-term value investors across different sectors, Oakmark Funds’ Bill Nygren said Thursday. “We’re generally selling what’s performed pretty well and recycling that money into the names that have been laggards,” Nygren said on CNBC’s ” Squawk on the Street .” Nygren revealed that he sold out of a position in Diamondback Energy , which has outperformed its peers with a nearly 27% gain in 2022. In the energy sector, Oakmark opted to keep positions in APA , Conocophilips and Dominion Energy , which have more non-earning assets, Nygren said. The portfolio manager then used the cash to buy Canadian auto parts manufacturer Magna International . It is a single-digit price-to-earnings stock that fell to around $60 from $100 at its high, Nygren said. MGA 1Y mountain Magna International “We think they’re under earning today because of supply chain problems,” Nygren said. Meanwhile, Oakmark built a position in Adobe , which saw its market cap fall to about $45 billion following the $20 billion acquisition of Figma. Shares of the tech name are now about 37% off its recent high. “That put it at a level where we thought next year’s expected earnings … it’s about the same multiple free cash flow as the S & P 500. We just think that’s too cheap for a company of this quality,” Nygren said. Oakmark also bought Oracle and Capital One recently.
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