Prosus (XAMS:PRX, Financial) (Netherlands), a global internet and technology company, was a top contributor to the Fund’s performance for the quarter. Prosus outperformed as a result of strong relative performance from its major holding, Tencent. Tencent, as well as other Chinese internet companies, performed well during the quarter as the Chinese government made several announcements supporting the internet sector. There is a growing narrative that the worst of the regulatory pressures on the Chinese internet are in the past and that, over time, the industry will grow at a more normal pace. In addition, at the end of the quarter, Prosus’ share price increased, following the announcement that the company is planning to sell part of its $134 billion stake in Tencent. Prosus will conduct an open-ended and unlimited program to sell its Tencent shares and use those proceeds to repurchase its own shares until the discount narrows to a level that is satisfactory to management. We welcome this change as it takes advantage of the massive discount in Prosus shares relative to its NAV.
From Bill Nygren (Trades, Portfolio) and David Herro (Trades, Portfolio)'s Oakmark Global Select Fund second-quarter 2022 commentary.
