Oakmark International Small Stock Strategy 2026 Q2 Review

Oakmark ' s international small capitalization strategy, in its comments in the second quarter of 2026, noted that international equities were up in the current quarter, with positive returns recorded in 9 of the 11 GICS industries. Finance and information technology contributed most to market returns, while energy and communications services were the only drag. By country, Japan and the Netherlands contributed the most to market performance, while Hong Kong and Norway were slow. The return on the portfolio during the reporting period was 5.34 per cent (net), compared with 7.94 per cent of the MSI World (excluding the United States) small capitalization index for the same period. Investor enthusiasm for artificial intelligence continued to dominate the market in the second quarter. We continue to assess companies on the basis of their competitive advantages, long-term cash flow potential and valuations relative to intrinsic value。