Harris Oakmark recently released its second-quarter 2026 investor letter for the “Oakmark U.S. Concentrated Strategy”. A copy of the letter can be downloaded here. The strategy returned 9.21% (net) in the second quarter, lagging the Russell 1000 Value Index’s 13.87%. U.S. equities finished higher during the quarter, with nine of eleven GICS sectors posting gains, led by technology and industrials, while energy and utilities detracted. The market showed concentrated leadership, with investors favoring companies that benefit from AI spending. However, the firm continues to focus on value discipline, avoiding AI-driven market fads, prioritizing companies trading below intrinsic value. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Oakmark U.S. Concentrated Strategy highlighted Keurig Dr Pepper Inc. (NASDAQ:KDP) as a notable performance contributor. Keurig Dr Pepper Inc. (NASDAQ:KDP) owns and distributes beverages and single serve brewing systems. On July 28, 2026, Keurig Dr Pepper Inc. (NASDAQ:KDP) closed at $31.08 per share, reflecting a market capitalization of $42.29 billion. Keurig Dr Pepper Inc. (NASDAQ:KDP) posted a one-month return of -6.86%, while its shares lost 8.10% over the past 52 weeks.
Oakmark U.S. Concentrated Strategy stated the following regarding Keurig Dr Pepper Inc. (NASDAQ:KDP) in its Q2 2026 investor update:
“Keurig Dr Pepper Inc. (NASDAQ:KDP) was a contributor during the quarter. The U.S.-headquartered beverage company’s stock rose after better-than-expected first-quarter results, a reaffirmed outlook, and a Barclays rating upgrade. Sales were strong, led by the cold beverage portfolio and the U.S. Refreshment Beverages segment, while U.S. Coffee remained pressured but met expectations. Management continues to make pro gress on its JDE Peet’s integration. We met with management to discuss the departure of Rafa Oliveira, head of its coffee unit, who is leaving for the CEO role at Heineken; the company has begun searching for his replacement. We continue to believe strong execution and integra tion will help close the valuation gap relative to peers.”
Keurig Dr Pepper Inc. (NASDAQ:KDP) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 43 hedge fund portfolios held Keurig Dr Pepper Inc. (NASDAQ:KDP) at the end of the first quarter, up from 41 in the previous quarter. While we acknowledge the risk and potential of Keurig Dr Pepper Inc. (NASDAQ:KDP) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Keurig Dr Pepper Inc. (NASDAQ:KDP) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Keurig Dr Pepper Inc. (NASDAQ:KDP) and shared the list of best NASDAQ stocks to buy for dividends. 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.
