Oakmark Global Fund Defends Owens Corning Amid Market Skepticism

Harris Oakmark released its second-quarter 2026 investor letter for the Oakmark Global Fund, which reported a return of 7.89% for the Investor Class. This performance trailed the MSCI World Index, which posted a 13.76% gain during the same period. The fund attributed its relative underperformance to sector allocation, noting that energy and industrials were the primary contributors to returns, while health care and consumer discretionary holdings detracted from the portfolio.

In the letter, the fund highlighted Owens Corning (NYSE:OC) as a key holding, citing the company’s dominant market position in the roofing segment. Harris Oakmark argued that market participants are underappreciating the quality of this division and are overly focused on the insulation segment’s exposure to new housing starts. The firm noted that Owens Corning benefits from attractive pricing power, significant scale advantages, and strong contractor loyalty, which mitigate the impact of cyclical market forces.

Owens Corning shares closed at $142.86 on July 14, 2026, reflecting a market capitalisation of $11.44 billion. The stock posted a one-month return of 15.55%, although it has gained only 1.73% over the past 52 weeks. The fund observed that economic uncertainty and cyclical pressures have weighed on industry sentiment, creating an opportunity to invest in a quality business with a management team actively engaging in share buybacks.

Despite the fund’s conviction, institutional interest in the building products maker has waned. Data from the fund’s database indicates that the number of hedge fund portfolios holding Owens Corning decreased from 53 in the previous quarter to 43 at the end of the first quarter of 2026. This reduction in holder count contrasts with the firm’s view that the stock remains underpriced relative to its long-term cash flow potential.

Financially, Owens Corning reported revenue of $2.3 billion in the first quarter of 2026, representing a 10% year-over-year decrease attributed to the challenging market environment. The company operates through three primary segments: Roofing, Insulation, and Doors. While Harris Oakmark maintains its position in the stock, the firm acknowledged that other sectors, particularly artificial intelligence stocks, may offer greater upside potential with less downside risk in the current landscape.