Harris Oakmark recently released its second-quarter 2026 investor letter for the “Oakmark Fund”. A copy of the letter can be downloaded here. The objective of the fund is to deliver capital appreciation by investing in a diverse set of large-cap US companies. In the quarter, the Fund (investor class) underperformed the S&P 500 Index, returning 2.45% vs. 15.20% for the index. The industrials and financials contributed to performance at the sector level, while information technology and energy detracted. Investing in AI-benefited enterprises kept market leadership narrow during the quarter. 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 Fund highlighted Booking Holdings Inc. (NASDAQ:BKNG) as a newly added position. Headquartered in Norwalk, Connecticut, Booking Holdings Inc. (NASDAQ:BKNG) is a leading online travel booking platform. On July 13, 2026, Booking Holdings Inc. (NASDAQ:BKNG) closed at $175.80 per share. The one-month return of Booking Holdings Inc. (NASDAQ:BKNG) was 0.05%, and its shares lost 22.56% over the past 52 weeks. Booking Holdings Inc. (NASDAQ:BKNG) has a market capitalization of $136.22 billion.
Oakmark Fund stated the following regarding Booking Holdings Inc. (NASDAQ:BKNG) in its Q2 2026 investor update:
“Booking Holdings Inc. (NASDAQ:BKNG) is a U.S.-headquartered online travel marketplace connecting hotels, alternative accommodation providers, and travelers across more than 220 countries. As the leading travel marketplace in the world, the company delivers what we view as the most comprehensive suite of services to independent hotels, the broadest inventory of directly bookable accommodations listings to travelers, and the most traffic to its lodging partners. We believe Booking’s competitive position is reinforced by its high direct traffic, including a loyalty program accounting for more than half of room nights booked, decades of direct integrations with independent providers, and a trusted brand that is the default travel marketplace across Europe. Sentiment has weakened materially on concern that large language models will disrupt the booking funnel, yet observable LLM traffic remains negligible, and management has a demonstrated record of competing alongside dominant top-of-funnel intermediaries. We were pleased to initiate a position with shares near a ten-year trough valuation and at a meaningful discount to our estimate of intrinsic value.”
Booking Holdings Inc. (NASDAQ:BKNG) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 95 hedge fund portfolios held Booking Holdings Inc. (NASDAQ:BKNG) at the end of the first quarter, compared to 109 in the previous quarter. In Q1 2026, Booking Holdings Inc. (NASDAQ:BKNG) reported revenue of $5.5 billion, up 16% and adjusted EBITDA of approximately $1.3 billion, an increase of 19%. While we acknowledge the risk and potential of Booking Holdings Inc. (NASDAQ:BKNG) 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 Booking Holdings Inc. (NASDAQ:BKNG) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Booking Holdings Inc. (NASDAQ:BKNG) and shared the list of most undervalued NASDAQ stocks to buy. 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.
