What Makes Birkenstock Holding plc (BIRK) an Attractive Bet?

Harris Oakmark recently released its second-quarter 2026 investor letter for the "Oakmark International Small Cap Fund". A copy of the letter can be downloaded here . The fund focuses on long-term capital appreciation by investing in small-cap companies located outside the U.S. In the quarter, the fund (Investor Class) delivered a return of 4.82%, trailing the benchmark, the MSCI World ex USA Index's 7.94 % return. Information technology and industrials were the top performance contributors at the sector level, while consumer staples and materials were the largest detractors. Enthusiasm for AI continued to be the defining market theme. The firm focuses on evaluating companies based on their competitive advantages, long-term cash flow potential, and valuation, instead of prediction relative to intrinsic value. In addition, you can check the Fund's top five holdings to determine its best picks for 2026.

In its Q2 2026 investor letter, Oakmark International Small Cap Fund highlighted Birkenstock Holding plc (NYSE: BIRK ). Birkenstock Holding plc (NYSE:BIRK) engages in the manufacturing and distribution of footwear products. On July 13, 2026, Birkenstock Holding plc (NYSE:BIRK) closed at $44.36 per share, reflecting a market capitalization of $8.16 billion. Birkenstock Holding plc (NYSE:BIRK) posted a one-month return of -5.52%, while its shares lost 7.08% over the past 52 weeks.

Oakmark International Small Cap Fund stated the following regarding Birkenstock Holding plc (NYSE:BIRK) in its Q2 2026 investor update:

" Birkenstock Holding plc (NYSE:BIRK) is a Germany-headquartered premium footwear company that designs, manu factures, and distributes sandals and closed-toe footwear globally, anchored by a proprietary cork and-latex footbed with documented orthopedic function. The premium footwear segment benefits from an oligopolistic structure in comfort-focused categories, where brand heritage, proprietary ma terials, and sustained supply discipline create mean ingful barriers to replication. We believe Birkenstock's fully vertically integrated manufacturing model and consistent full-price sell-through dis tinguish it from conventional footwear peers and support more durable growth and margins than the current share price implies. The stock has de-rated due to a combination of tariff exposure, dollar weakness, and market skepticism about the dura bility of recent product momentum — concerns we view as transitory or overstated — leaving shares trading at a meaningful discount to our estimate of intrinsic value."

Birkenstock Holding plc (NYSE:BIRK) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 . According to our database, 32 hedge fund portfolios held Birkenstock Holding plc (NYSE:BIRK) at the end of the first quarter, compared to 41 in the previous quarter. In the second quarter of fiscal 2026, Birkenstock Holding plc (NYSE:BIRK) reported revenue of EUR 618 million, an 8% year-over-year increase on a reported basis. While we acknowledge the potential of Birkenstock Holding plc (NYSE:BIRK) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock .

In another article , we covered Birkenstock Holding plc (NYSE:BIRK) and shared a bullish thesis on the company. In addition, please check out our hedge fund investor letters Q2 2026 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.

Sinergia Empresarial continuará el seguimiento de esta información sobre what Makes Birkenstock Holding plc (BIRK) an Attractive Bet? y ampliará la cobertura conforme se confirmen nuevos elementos relevantes para el ecosistema empresarial.