Oakmark Funds, advised by Harris Associates, released its “Oakmark International Small Cap Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. For the quarter ended June 30, 2024, the fund returned -3.11% compared to the MSCI World ex USA Small Cap Index (Net) benchmark’s -1.56% return. Since its inception in November 1995, the fund returned an average of 8.42% per year. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Oakmark International Small Cap Fund highlighted stocks like Embotelladora Andina S.A. (NYSE:AKO-B) in its Q2 2024 investor letter. Embotelladora Andina S.A. (NYSE:AKO-B) produces, markets, and distributes Coca-Cola trademark beverages. The one-month return of Embotelladora Andina S.A. (NYSE:AKO-B) was 6.97%, and its shares gained 16.18% of their value over the last 52 weeks. On July 11, 2024, Embotelladora Andina S.A. (NYSE:AKO-B) stock closed at $19.10 per share with a market capitalization of $3.013 billion.
Oakmark International Small Cap Fund stated the following regarding Embotelladora Andina S.A. (NYSE:AKO-B) in its Q2 2024 investor letter:
“Embotelladora Andina S.A. (NYSE:AKO-B) is a pan-Latin-America Coca-Cola bottling and distribution franchisee listed in Chile. We appreciate that both Andina and Coca-Cola are benefiting from changes in the nature of bottler agreements, including recently established concentrate pricing agreements between bottlers and Coca-Cola that bring more visibility on the ROI-attractiveness of investments made by bottlers for growth. In addition, a large segment of Andina’s business operates in the refillable bottles space, which has high barriers to entry and in[1]creases the competitive strength of Andina’s distribution capabilities. Andina shares have recently suffered from multiple compressions due to regional macro-political headwinds in 2022 and 2023. However, the company demonstrated consistent earnings growth and expanding returns over this same time period. In spite of the improving business quality and easing political tension, Andina shares recently traded near a 15-year low multiple, and we were happy to purchase shares of the company at a discount to other quality bottlers and our estimate of the company’s business value.”
A close-up of a bottle of Coca-Cola, showing its iconic branding, from the factory shelves.
Embotelladora Andina S.A. (NYSE:AKO-B) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 1 hedge fund portfolios held Embotelladora Andina S.A. (NYSE:AKO-B) at the end of the first quarter which was 1 in the previous quarter. While we acknowledge the potential of Embotelladora Andina S.A. (NYSE:AKO-B) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.