Platinum Asset Management, an investment management company, released its Q2 2026 investor letter for “Platinum International Brands Fund”. A copy of the letter can be downloaded here. The fund returned over 4% in the quarter but lost 14% over the past year, primarily due to the dominance of tech stocks amid an AI investment boom. Consumer-focused sectors underperformed due to weak sentiment and challenges such as high interest rates and rising oil prices, which have contributed to record-low consumer confidence. However, the fund’s holdings remain fundamentally strong, with top holdings averaging 13% sales growth and 19% profit growth. The letter noted that positive developments include resumed job growth, reduced oil prices, and easing fiscal policy, which potentially enhance consumer sentiment. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Platinum International Brands Fund highlighted Zoetis Inc. (NYSE:ZTS). Zoetis Inc. (NYSE:ZTS), an animal health company focused on animal health medications, vaccines, and diagnostic products, detracted from the Fund’s performance during the quarter. On July 28, 2026, Zoetis Inc. (NYSE:ZTS) closed at $77.51 per share. One-month return of Zoetis Inc. (NYSE:ZTS) was 6.98%, and its shares lost 47.91% over the past 52 weeks. Zoetis Inc. (NYSE:ZTS) has a market capitalization of about $32.49 billion.
Platinum International Brands Fund stated the following regarding Zoetis Inc. (NYSE:ZTS) in its Q2 2026 investor update:
“Our worst performer was Zoetis (-35%). Simply, we got this wrong. Zoetis Inc. (NYSE:ZTS) makes medicines for pets and livestock and has long been the great innovator of its field, having pioneered and dominated the huge markets for canine dermatology and three-in-one parasiticides.
Unfortunately, its rivals have caught up and its commercial response has disappointed. In fairness, it likely expected its promising new arthritis treatment to comfortably offset any erosion. However, a social media scare campaign derailed its US launch largely because their commercial response was again inadequate.
Zoetis has a superb research engine and an exciting pipeline; we simply misjudged its ability to execute commercially. We have sold the bulk of our holding, as its next launch is at best a year away.”
Zoetis Inc. (NYSE:ZTS) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 57 hedge fund portfolios held Zoetis Inc. (NYSE:ZTS) at the end of the first quarter, compared to 69 in the previous quarter. While we acknowledge the risk and potential of Zoetis Inc. (NYSE:ZTS) 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 Zoetis Inc. (NYSE:ZTS) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Zoetis Inc. (NYSE:ZTS) and shared Moon Capital Management’s insights 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.
