Why Equitable Holdings (EQH) Became Oakmark Fund’s New Core Holding

Oakmark Fund’s Q2 2026 letter spotlights Equitable Holdings (EQH) as a fresh cornerstone position.

Why the Fund Went Long

The fund highlights EQH’s shift toward fee‑based, capital‑light businesses and the structural demand from an aging population for annuities and advisory services. This transition moves earnings from volatile spread‑driven insurance to more predictable cash flows.

Valuation Metrics and Financial Snapshot

On July 13 2026, EQH closed at $47.80; one‑month return +5.54%, 52‑week loss ‑7.81%. Market capitalization stands at $13.05 billion. The fund notes a valuation of < 6× the projected 2027 distributable cash flow.

■Market Cap: $13.05 billion

■One‑Month Return: +5.54%

■52‑Week Performance: ‑7.81%

■Valuation Multiple: < 6× 2027 DCF

Merger Outlook and Market Implications

The pending tie‑up with Corebridge Financial is framed as an equal‑value merger that should generate scale economies. Post‑integration, the combined entity aims to become a leading U.S. retirement, wealth‑management, and asset‑management franchise.

■Equal‑Value Deal: Scale and synergy upside

■Earnings & Cash Generation: Positive contribution expected

■Market Positioning: Potential rise to a leadership tier

Risk‑Reward Matrix

While the transformation exposes EQH to regulatory shifts and interest‑rate volatility, its fee‑based revenue stream, extensive distribution network, and favorable demographic tailwinds provide a durable growth engine.

■Risks: Regulatory changes, rate risk, integration uncertainty

■Opportunities: Growing fee revenue, merger synergies, demographic tailwinds

Expert Note (Bora Yalın): EQH’s positioning combines an attractive discount with a rising fee‑based cash‑flow profile. Completion of the Corebridge merger could boost volatility, but the long‑term risk‑on case remains solid, offering a 15‑20% upside from current levels. Investors should view any near‑term pull‑back as a buying opportunity, targeting a 2028 horizon for value realization.