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Platinum’s Brands Fund Posts Small Q2 Gain but Trails After AI-Led Market

The manager says strong company profits, buybacks and early signs of job growth could help consumer stocks recover.

Overview

  • Platinum Asset Management said its Platinum International Brands Fund returned just over 4% in Q2 2026 but is down about 14% over the past year because AI and tech stocks drove market returns.
  • The fund highlighted that its top holdings still show solid operating performance, with average sales growth of about 13% and profit growth near 19%, supporting a cautious, constructive stance.
  • Platinum named Birkenstock as a major positive contributor, saying the company delivered a 24% operating margin, 40% return on capital, 25% profit growth year-on-year, insider buying by the CEO and a substantial board buyback.
  • The letter called Zoetis the worst performer, saying a social-media scare disrupted a US product launch, commercial execution lagged and the fund has sold the bulk of its holding because the next launch is likely at least a year away.
  • Platinum noted Caterpillar shrugged off a 14% profit drop and rallied roughly 36% for the fund, with tariffs raising steel costs but steady demand in engines, mining and data-center projects seen as a durable support for future revenue.