The Oakmark International Small Cap Strategy demonstrated a robust performance in the second quarter of 2026, achieving a net return of 5.34%. This positive outcome was significantly influenced by the strong contributions of several key holdings within the portfolio. This performance is particularly noteworthy when assessed against the broader market index, illustrating the strategy's effectiveness in navigating the dynamic international small-cap landscape. The report delves into the individual stock performances that shaped these results, providing a clear picture of both the successes and the areas that faced headwinds during the period.
During the reporting period, Jenoptik, Hamamatsu Photonics, and oOh!media emerged as the top-performing assets within the Oakmark International Small Cap Strategy. Jenoptik, a German technology company specializing in optics and photonics, likely benefited from increasing demand in its core markets, such as semiconductor equipment and industrial metrology. Hamamatsu Photonics, a Japanese manufacturer of optoelectronic components, may have seen its value rise due to strong global demand for advanced sensors and light sources in various applications, including medical and scientific instrumentation. Meanwhile, oOh!media, an Australian out-of-home advertising company, could have experienced gains as economic recovery led to increased advertising spending and a rebound in outdoor media consumption.
Conversely, Valmet, Lanxess, and Adecco were identified as the primary detractors from the portfolio's overall performance. Valmet, a Finnish developer and supplier of technologies and services for the pulp, paper, and energy industries, might have faced challenges such as supply chain disruptions, fluctuating raw material costs, or slower-than-anticipated project implementations. Lanxess, a German specialty chemicals company, could have been impacted by volatile chemical prices, shifts in industrial demand, or competitive pressures. Adecco, a Swiss-based global temporary staffing agency, may have experienced headwinds from a slowdown in global hiring, increased labor costs, or uncertainty in the employment market. These individual stock movements highlight the varied forces at play within the international small-cap investment sphere during the quarter.
The second quarter of 2026 underscored the fluctuating nature of international small-cap investments, with certain holdings driving substantial gains while others presented challenges. The strategy's overall positive return indicates a resilient approach to stock selection and portfolio management despite these varying performances. Investors will continue to monitor the interplay of global economic factors and company-specific developments as they influence future market movements.
