Harris Oakmark recently released its second-quarter 2026 investor letter for the “Oakmark International Small Cap Fund”. A copy of the letter can be downloaded here. The fund focuses on long-term capital appreciation by investing in small-cap companies located outside the U.S. In the quarter, the fund (Investor Class) delivered a return of 4.82%, trailing the benchmark, the MSCI World ex USA Index’s 7.94 % return. Information technology and industrials were the top performance contributors at the sector level, while consumer staples and materials were the largest detractors. Enthusiasm for AI continued to be the defining market theme. The firm focuses on evaluating companies based on their competitive advantages, long-term cash flow potential, and valuation, instead of prediction relative to intrinsic value. In addition, you can check the Fund’s top five holdings to determine its best picks for 2026.
In its Q2 2026 investor letter, Oakmark International Small Cap Fund highlighted Birkenstock Holding plc (NYSE:BIRK). Birkenstock Holding plc (NYSE:BIRK) engages in the manufacturing and distribution of footwear products. On July 14, 2026, Birkenstock Holding plc (NYSE:BIRK) closed at $44.36 per share, reflecting a market capitalization of $8.16 billion. Birkenstock Holding plc (NYSE:BIRK) posted a one-month return of -5.52%, while its shares lost 7.08% over the past 52 weeks.
Oakmark International Small Cap Fund stated the following regarding Birkenstock Holding plc (NYSE:BIRK) in its Q2 2026 investor update:
“Birkenstock Holding plc (NYSE:BIRK) is a Germany-headquartered premium footwear company that designs, manu factures, and distributes sandals and closed-toe footwear globally, anchored by a proprietary cork and-latex footbed with documented orthopedic function. The premium footwear segment benefits from an oligopolistic structure in comfort-focused categories, where brand heritage, proprietary ma terials, and sustained supply discipline create mean ingful barriers to replication. We believe Birkenstock’s fully vertically integrated manufacturing model and consistent full-price sell-through dis tinguish it from conventional footwear peers and support more durable growth and margins than the current share price implies. The stock has de-rated due to a combination of tariff exposure, dollar weakness, and market skepticism about the dura bility of recent product momentum — concerns we view as transitory or overstated — leaving shares trading at a meaningful discount to our estimate of intrinsic value.”
