We added one new position during the quarter in TIS, Inc. (TSE:3626, Financial), the fourth-largest system integrator (SI) in Japan. SIs specialize in automation and in bringing together component subsystems so that they function properly together. In our view, Japan lags behind most developed nations in terms of digitizing its economy. This fact, combined with the country's shortage of IT engineering talent, should bode well for the Japanese SI market's structural growth. TIS has strong roots in the financials sector and its 2008 merger with Intec fortified the company's balance sheet and increased scale. We believe recent integration efforts by Chairman Kuwano-San and business mix improvements will allow for additional margin expansion and healthy free cash flow generation.
From David Herro (Trades, Portfolio)'s Oakmark Intl Small Cap (Trades, Portfolio) Fund fourth-quarter 2020 shareholder commentary.
