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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
