David Herro (Trades, Portfolio), manager of Harris Associates’ Oakmark International Fund, disclosed two new holdings in his fourth-quarter 2018 portfolio, which was released last week.

The guru, who also manages the Chicago-based firm’s International Small Cap and Global Select funds, looks for value opportunities in foreign mid- and large-cap companies that are trading at a significant discount to his estimate of intrinsic value. His goal is to generate long-term capital appreciation by patiently waiting for the gap between the stock price and intrinsic value to close.

Based on these criteria, Herro established positions in Naver Corp. (XKRX:035420)

Ashtead Group (LSE:AHT), a U.K.-based construction and industrial equipment rental company, was the largest contributor for the fiscal year. Sunbelt, the U.S. rental division of the company, accounts for over 80% of Ashtead’s revenue and nearly 90% of its operating profit. Sunbelt is the dominant second player in a highly fragmented market and experienced 20% revenue growth for the fiscal year, four times that of the industry. The structural shift toward renting equipment continues, and the number of longer term projects is also increasing. Historically, customers bought equipment for longer term projects, but increasingly, they are now choosing to

The Oakmark International Fund declined 6.3% for the fiscal year ended September 30, 2018, underperforming the MSCI World ex U.S. Index, which returned 2.7% over the same period. For the most recent quarter, the Fund underperformed the MSCI World ex U.S. Index, falling 0.9%, compared to the benchmark’s return of 1.3%. However, the Fund has returned an average of 9.7% per year since its inception in September 1992, outperforming the MSCI World ex U.S. Index, which has averaged 6.1% per year over the same period.

You should know that, as fellow shareholders, we recognize our results have recently disappointed and

H&E Equipment Services Inc. (HEES) rents, sells and provides parts and maintenance services for heavy construction and industrial equipment.

The company has four core categories of equipment, which include aerial work platform equipment, cranes, earthmoving equipment and industrial lift trucks, making it a perfect acquisition target for United Rentals Inc. (URI).

H&E has been relatively stagnant on the top line since rebounding from the 2008 housing collapse. Sales have hovered around $1 billion since 2013, but the company has become more efficient, leading to increased net income and book value over the last five years.

It also has a

Mario Gabelli (Trades, Portfolio) of GAMCO Investors discussed a current stock pick at the Great Investors’ Best Ideas Symposium in Dallas on Oct. 18. He has presented multiple times over the event’s 10-year history and revealed his stock pick for this year is in equipment rentals. The stock is Herc Holdings (HRI), a spinoff from Hertz Global Holdings (HTZ).

Gabelli touched on our country and our world’s current economical, political and societal conditions, highlighting areas where money is spent, such as the military, housing, infrastructure, health, etc. He emphasized the state of our country’s

The top four transactions made by David Herro (Trades, Portfolio) of Oakmark International Fund in the first quarter were additions to existing stakes. The top two sold with margins of safety that exceeded 30%, according to the DCF Calculator.

Herro

The Oakmark International Fund declined 9% for the fiscal year ended September 30, 2015, outperforming the MSCI World ex U.S. Index, which declined 10%. For the most recent quarter, the Fund underperformed the MSCI World ex U.S. Index, declining 13% versus a decline of 11%. However, the Fund has performed well versus the MSCI World ex U.S. Index since its September 1992 inception, returning an average of 10% versus 6% over the same period.

Intesa Sanpaolo (MIL:ISP), an Italian retail and commercial bank, was the top contributor to performance over the past 12 months. Intesa’s share price