Oakmark International Small Cap Fund’s Top 5 Trades of the 2nd Quarter

The


Oakmark Intl Small Cap
(Trades, Portfolio) Fund, part of Chicago-based Oakmark Funds, disclosed last week that its top five trades during the second quarter included new buys in Talanx AG (XTER:TLX, Financial) and SoftwareONE Holding AG (XSWX:SWON, Financial), a position boost in Abrdn PLC (LSE:ABDN, Financial) and reductions in Gildan Activewear Inc. (TSX:GIL, Financial) and Travis Perkins PLC (LSE:TPK, Financial).

Managed by


David Herro
(Trades, Portfolio), Michael Manelli and Justin Hance, the fund seeks long-term capital appreciation by investing in small-cap companies around the globe. Oakmark looks for companies that have shareholder-oriented management teams and are priced below the fund’s estimate of intrinsic value. After purchase, the fund patiently waits for the gap between price and intrinsic value to close.

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As of June 30, the fund’s $1.62 billion equity portfolio contains 58 stocks, with five new positions and a turnover ratio of 12%. The top four sectors in terms of weight are industrials, financial services, consumer cyclical and technology, representing 35.88%, 20.62%, 10.78% and 10.65% of the equity portfolio.

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Talanx

The fund purchased 723,217 shares of Talanx (

XTER:TLX, Financial), giving the position 1.82% weight in the equity portfolio. Shares averaged 35.25 euros ($41.62) during the second quarter; the stock is fairly valued based on Tuesday’s price-to-GF Value ratio of approximately 1.

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GuruFocus ranks the German insurance company’s financial strength 4 out of 10 on the back of interest coverage and debt ratios that underperform more than 73% of global competitors despite a high Piotroski F-score of 7.

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SoftwareONE Holding

The fund purchased 814,800 shares of SoftwareONE Holding (

XSWX:SWON, Financial), dedicating 1.19% of its portfolio to the stake. Shares averaged 22.72 francs ($24.83) during the second quarter.

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GuruFocus ranks the Swiss software company’s financial strength 7 out of 10 on several positive investing signs, which include a high Altman Z-score of 4.12 and cash-to-debt and debt-to-equity ratios that are outperforming more than 66% of global competitors.

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Abrdn

The fund purchased 4,168,035 shares of Abrdn PLC (

LSE:ABDN, Financial), increasing the position by 65.02% and the equity portfolio by 0.96%. Shares averaged 2.79 pounds ($3.84) during the second quarter; the stock is fairly valued based on Tuesday’s price-to-GF Value ratio of 0.94.

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GuruFocus ranks the U.K.-based asset management company’s financial strength 6 out of 10 on the back of a good Piotroski F-score of 6 and debt ratios outperforming more than 65% of global competitors.

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Gildan Activewear

The fund sold 592,400 shares of Gildan Activewear (

TSX:GIL, Financial), reducing the position by 57.57% and the equity portfolio by 1.23%. Shares averaged 42.85 Canadian dollars ($33.97) during the second quarter; the stock is modestly overvalued based on Tuesday’s price-to-GF Value ratio of 1.14.

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GuruFocus ranks the Canadian apparel company’s profitability 7 out of 10 on several positive investing signs, with include a high Piotroski F-score of 7 and profit margins and returns that outperform more than 80% of global competitors.

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Travis Perkins

The fund sold 586,676 shares of Travis Perkins (

LSE:TPK, Financial), trimming 26.59% of the stake and 0.85% of the equity portfolio. Shares averaged 16.06 pounds ($22.09) during the second quarter; the stock is signficantly overvalued based on Tuesday’s price-to-GF Value ratio of 1.95.

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GuruFocus ranks the U.K.-based construction company’s financial strength 5 out of 10 on the back of debt-to-equity ratios underperforming more than 54% of global competitors.

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