Oakmark International Strategy Q4 Underperformance Against Benchmark
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 10 2026
0mins
Source: seekingalpha
- Quarterly Performance Review: The Oakmark International Strategy reported a return of 4.93% in Q4, underperforming the MSCI World ex USA Index's gain of 5.20%, indicating relative weakness in the strategy that may affect investor confidence.
- New Investment Positions: During the quarter, the fund initiated positions in AstraZeneca (AZN), IMCD (IMCDY), and Sanofi (SNY), reflecting a strategic focus on biopharmaceuticals and consumer goods to capture future growth potential.
- Position Eliminations: The fund eliminated its holdings in Exor, Komatsu (KMTUY), and Mercedes-Benz Group (MBGAF), indicating a cautious outlook on these companies and a potential strategy to optimize portfolio performance.
- Market Reaction Expectations: Given the underperformance relative to the benchmark, investors may reassess Oakmark's investment strategy, necessitating adjustments to enhance returns and align with market trends.
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Analyst Views on UL
Wall Street analysts forecast UL stock price to fall
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 73.960
Low
60.10
Averages
68.37
High
74.00
Current: 73.960
Low
60.10
Averages
68.37
High
74.00
About UL
Unilever PLC is a United Kingdom-based global consumer goods business. The Company's segments include Beauty & Wellbeing, Personal Care, Home Care and Foods. The Beauty & Wellbeing segment primarily sells hair care (shampoo, conditioner, styling), skin care (face, hand and body moisturizers) and includes Prestige Beauty and Wellbeing. The Personal Care segment primarily sells skin cleansing (soap, shower), deodorant and oral care (toothpaste, toothbrush, mouthwash) products. The Home Care segment primarily sells fabric care (washing powders and liquids, rinse conditioners) and a range of home and hygiene cleaning products. The Foods segment primarily sells cooking aids and mini-meals (soups, bouillons, seasonings), condiments (mayonnaise, ketchup) and Unilever Food Solutions. The Company's beauty & wellbeing brands include CLEAR, Dermalogica, Liquid I.V., Dove and TRESemme. The Company's home care brands include Cif, Comfort, Domestos, OMO, Radiant, Sunlight and Surf.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Data Migration and Infrastructure: This collaboration will migrate Unilever's data and cloud platforms to Google Cloud, establishing an AI-first digital infrastructure that enhances its ability to adapt to market changes and generate demand.
- Intelligent Systems Development: The partnership will focus on developing intelligent systems capable of executing complex tasks, redefining value creation within the company and ensuring Unilever maintains a competitive edge in a rapidly changing market.
- Enhanced Market Intelligence: By integrating data platforms and accelerating the use of cutting-edge AI technologies, this collaboration will enhance Unilever's marketing intelligence, helping it maintain a leading position in the fast-moving consumer goods market.
See More
Unilever Partners with Google Cloud for Five-Year AI Transformation
- Strategic Partnership: Unilever and Google Cloud have formed a five-year partnership to leverage Google Cloud's advanced AI and data platforms, accelerating Unilever's business transformation and enhancing growth potential for its global brand portfolio.
- Technology-Driven Value Creation: By migrating to Google Cloud, Unilever will establish an AI-first digital backbone that generates demand rapidly and enhances market responsiveness, thereby maintaining a competitive edge in the fast-moving consumer goods sector.
- Intelligent Marketing Capabilities: The collaboration will focus on developing next-generation marketing capabilities, emphasizing brand discovery, conversion, and measurement, ensuring Unilever remains at the forefront of technological and consumer habit shifts.
- Advanced AI Adoption: This partnership will fast-track Unilever's adoption of pioneering technologies, combining its deep industry expertise with Google's AI capabilities to sustain long-term competitive advantages in the consumer packaged goods market.
See More
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- Unilever's Innovations: Unilever's systems can digitally test thousands of recipes in seconds, with the Knorr Fast & Flavourful Paste developed in roughly half the usual time, significantly improving R&D efficiency and reducing the need for physical testing.
- Market Potential: Industry analysts estimate that the market for AI in food and beverages will grow from approximately $10 billion in 2025 to over $50 billion by 2030, driven by increased investment in data-driven product development and personalization, indicating substantial business opportunities.
- Importance of Human Creativity: Despite AI's supportive role in food R&D, experts emphasize that human creativity and judgment remain indispensable, with AI serving merely as a tool to enhance the capabilities of R&D teams rather than replacing human sensory evaluation.
See More
AI's Role and Challenges in the Food Industry
- Efficiency Boost in R&D: McCormick has reduced flavor development timelines by 20% to 25% on average through AI, enabling faster identification of promising flavor combinations and accelerating time-to-market for new products.
- Rapid Development at Unilever: Unilever employs AI to digitally test thousands of recipes, resulting in the Knorr Fast & Flavourful Paste being developed in about half the usual time, significantly enhancing product development efficiency and market responsiveness.
- Massive Market Potential: Industry analysts estimate that the market for AI in food and beverages will grow from approximately $10 billion in 2025 to over $50 billion by 2030, reflecting increasing investments in data-driven product development.
- Human Judgment Remains Crucial: Despite AI's significant role in food R&D, experts emphasize that human creativity and judgment are irreplaceable, with AI serving merely as a tool to enhance efficiency and flexibility in the development process.
See More
Unilever Reports Strong FY 2023 Results with Strategic Buyback
- Financial Performance: Unilever reported a FY 2023 non-GAAP EPS of €3.08, with turnover at €50.5 billion reflecting a 3.8% year-over-year decline, yet demonstrating stable profitability amid market fluctuations.
- Sales Growth: The company achieved a 3.5% underlying sales growth, with a 1.5% volume increase, indicating its ability to maintain market share in a competitive environment and reflecting the ongoing appeal of its products.
- Margin Expansion: Underlying operating margin expanded to 20.0%, up 60 basis points from the previous year, showcasing the company's success in cost control and operational efficiency, thereby enhancing future profitability sustainability.
- Share Buyback: Unilever announced a €1.5 billion share buyback plan aimed at enhancing shareholder value and boosting market confidence, while projecting 2026 underlying sales growth to remain within the 4% to 6% guidance range despite anticipated market slowdowns.
See More
Oakmark International Strategy Q4 Underperformance Against Benchmark
- Quarterly Performance Review: The Oakmark International Strategy reported a return of 4.93% in Q4, underperforming the MSCI World ex USA Index's gain of 5.20%, indicating relative weakness in the strategy that may affect investor confidence.
- New Investment Positions: During the quarter, the fund initiated positions in AstraZeneca (AZN), IMCD (IMCDY), and Sanofi (SNY), reflecting a strategic focus on biopharmaceuticals and consumer goods to capture future growth potential.
- Position Eliminations: The fund eliminated its holdings in Exor, Komatsu (KMTUY), and Mercedes-Benz Group (MBGAF), indicating a cautious outlook on these companies and a potential strategy to optimize portfolio performance.
- Market Reaction Expectations: Given the underperformance relative to the benchmark, investors may reassess Oakmark's investment strategy, necessitating adjustments to enhance returns and align with market trends.
See More
Unilever Partners with Google Cloud for Five-Year AI Transformation
- Strategic Partnership: Unilever has embarked on a five-year partnership with Google Cloud aimed at revolutionizing the consumer goods sector through advanced AI and data technologies, enhancing the market performance of its brand portfolio.
- Data Migration and Infrastructure: This collaboration will migrate Unilever's data and cloud platforms to Google Cloud, establishing an AI-first digital infrastructure that enhances its ability to adapt to market changes and generate demand.
- Intelligent Systems Development: The partnership will focus on developing intelligent systems capable of executing complex tasks, redefining value creation within the company and ensuring Unilever maintains a competitive edge in a rapidly changing market.
- Enhanced Market Intelligence: By integrating data platforms and accelerating the use of cutting-edge AI technologies, this collaboration will enhance Unilever's marketing intelligence, helping it maintain a leading position in the fast-moving consumer goods market.
See More
Unilever Partners with Google Cloud for Five-Year AI Transformation
- Strategic Partnership: Unilever and Google Cloud have formed a five-year partnership to leverage Google Cloud's advanced AI and data platforms, accelerating Unilever's business transformation and enhancing growth potential for its global brand portfolio.
- Technology-Driven Value Creation: By migrating to Google Cloud, Unilever will establish an AI-first digital backbone that generates demand rapidly and enhances market responsiveness, thereby maintaining a competitive edge in the fast-moving consumer goods sector.
- Intelligent Marketing Capabilities: The collaboration will focus on developing next-generation marketing capabilities, emphasizing brand discovery, conversion, and measurement, ensuring Unilever remains at the forefront of technological and consumer habit shifts.
- Advanced AI Adoption: This partnership will fast-track Unilever's adoption of pioneering technologies, combining its deep industry expertise with Google's AI capabilities to sustain long-term competitive advantages in the consumer packaged goods market.
See More
AI's Role in Food R&D: Enhancements and Limitations
- Historical AI Use: McCormick has utilized AI in flavor development for nearly a decade, achieving an average reduction in development timelines by 20% to 25% by identifying promising flavor combinations, thereby enhancing product launch speed and market competitiveness.
- Unilever's Innovations: Unilever's systems can digitally test thousands of recipes in seconds, with the Knorr Fast & Flavourful Paste developed in roughly half the usual time, significantly improving R&D efficiency and reducing the need for physical testing.
- Market Potential: Industry analysts estimate that the market for AI in food and beverages will grow from approximately $10 billion in 2025 to over $50 billion by 2030, driven by increased investment in data-driven product development and personalization, indicating substantial business opportunities.
- Importance of Human Creativity: Despite AI's supportive role in food R&D, experts emphasize that human creativity and judgment remain indispensable, with AI serving merely as a tool to enhance the capabilities of R&D teams rather than replacing human sensory evaluation.
See More
AI's Role and Challenges in the Food Industry
- Efficiency Boost in R&D: McCormick has reduced flavor development timelines by 20% to 25% on average through AI, enabling faster identification of promising flavor combinations and accelerating time-to-market for new products.
- Rapid Development at Unilever: Unilever employs AI to digitally test thousands of recipes, resulting in the Knorr Fast & Flavourful Paste being developed in about half the usual time, significantly enhancing product development efficiency and market responsiveness.
- Massive Market Potential: Industry analysts estimate that the market for AI in food and beverages will grow from approximately $10 billion in 2025 to over $50 billion by 2030, reflecting increasing investments in data-driven product development.
- Human Judgment Remains Crucial: Despite AI's significant role in food R&D, experts emphasize that human creativity and judgment are irreplaceable, with AI serving merely as a tool to enhance efficiency and flexibility in the development process.
See More
Unilever Reports Strong FY 2023 Results with Strategic Buyback
- Financial Performance: Unilever reported a FY 2023 non-GAAP EPS of €3.08, with turnover at €50.5 billion reflecting a 3.8% year-over-year decline, yet demonstrating stable profitability amid market fluctuations.
- Sales Growth: The company achieved a 3.5% underlying sales growth, with a 1.5% volume increase, indicating its ability to maintain market share in a competitive environment and reflecting the ongoing appeal of its products.
- Margin Expansion: Underlying operating margin expanded to 20.0%, up 60 basis points from the previous year, showcasing the company's success in cost control and operational efficiency, thereby enhancing future profitability sustainability.
- Share Buyback: Unilever announced a €1.5 billion share buyback plan aimed at enhancing shareholder value and boosting market confidence, while projecting 2026 underlying sales growth to remain within the 4% to 6% guidance range despite anticipated market slowdowns.
See More
Oakmark International Strategy Q4 Underperformance Against Benchmark
- Quarterly Performance Review: The Oakmark International Strategy reported a return of 4.93% in Q4, underperforming the MSCI World ex USA Index's gain of 5.20%, indicating relative weakness in the strategy that may affect investor confidence.
- New Investment Positions: During the quarter, the fund initiated positions in AstraZeneca (AZN), IMCD (IMCDY), and Sanofi (SNY), reflecting a strategic focus on biopharmaceuticals and consumer goods to capture future growth potential.
- Position Eliminations: The fund eliminated its holdings in Exor, Komatsu (KMTUY), and Mercedes-Benz Group (MBGAF), indicating a cautious outlook on these companies and a potential strategy to optimize portfolio performance.
- Market Reaction Expectations: Given the underperformance relative to the benchmark, investors may reassess Oakmark's investment strategy, necessitating adjustments to enhance returns and align with market trends.
See More
