Oakmark International Fund Picked Unilever PLC (UL) Despite Mixed Growth Drivers

Core Insights - Oakmark International Fund's fourth-quarter 2025 investor letter highlights a focus on long-term capital appreciation through investments in non-U.S. mid and large-cap companies, with a reported return of 4.83% for the fund, slightly underperforming the MSCI World ex USA Index's gain of 5.20% [1] Fund Performance - The fund's top performance contributors were in the healthcare and financial sectors, while consumer staples were the only detractor [1] - The fund's top five holdings can be reviewed for insights into its best investment picks for 2025 [1] Company Focus: Unilever PLC - Unilever PLC is identified as a key stock in the fund's portfolio, operating in various segments including Beauty & Wellbeing, Personal Care, Home Care, Nutrition, and Ice Cream [2] - As of January 14, 2026, Unilever's stock closed at $65.33, with a one-month return of -0.20% and a 10.00% gain over the last 52 weeks, alongside a market capitalization of $142.546 billion [2] - The fund appreciates Unilever's refreshed management team and their strategic initiatives aimed at improving execution and driving consistent growth, particularly in higher-margin categories [3] - Despite a strong outlook, Unilever trades at a discount compared to peers due to historical underperformance, presenting an investment opportunity in a company with strong brands and improved management [3] Market Sentiment - Morgan Stanley has resumed coverage of Unilever with an overweight view, noting that it is not among the 30 most popular stocks among hedge funds, with 27 hedge fund portfolios holding the stock at the end of the third quarter [4] - While acknowledging Unilever's potential, there is a belief that certain AI stocks may offer greater upside potential and lower downside risk [4]