In a recent development, former President Donald Trump extended his appreciation to the state of Florida's authorities, including Governor Ron DeSantis, following the official renaming of a four-mile portion of Southern Boulevard in his honor. This newly designated route, now known as \"President Donald J. Trump Boulevard,\" connects Palm Beach International Airport directly to his Mar-a-Lago residence, a decision that received unanimous approval from the Palm Beach County Board of County Commissioners.
\nThe measure, which saw bipartisan support with a 7-0 vote by the Palm Beach County Board of County Commissioners, follows legislation passed by the GOP-led state legislature in May and subsequently signed into law by Governor Ron DeSantis on June 13. While local leaders have given their full endorsement, the Florida Department of Transportation is now tasked with installing the new signage. Notably, this change is purely honorary, as the original \"Southern Boulevard\" designation will continue to be used for all official addresses and emergency services. This initiative aligns with a tradition in Florida of dedicating major thoroughfares to former commanders-in-chief, such as the President Barack Obama Highway in Riviera Beach and the George Bush Boulevard in Delray Beach, with the state's entire Turnpike also bearing the name Ronald Reagan Turnpike. Additionally, the legislation includes an adjacent segment to be named \"PBSO Motorman Highway\" to commemorate three Palm Beach County motorcycle deputies who tragically lost their lives last November, with new signs expected to be in place by September.
\nThis gesture symbolizes a profound recognition of political figures, reflecting the state's enduring respect for their contributions. Such acts of remembrance not only honor past leaders but also serve as a reminder of the historical impact individuals can have on their communities and the nation. It underscores the idea that public service, when carried out with integrity and dedication, can leave an indelible mark on society, inspiring future generations to strive for leadership and positive change.
Charting a Course for Sustainable Prosperity in Water Management
\nStrategic Investment in a Vital Sector: The Case for Xylem
\nMy assessment indicates a favorable outlook for Xylem Inc. (NYSE:XYL), recommending a 'buy' rating. The company offers focused exposure to essential themes: the escalating challenge of global water scarcity, the urgent need for modernizing dilapidated water infrastructure, and the critical development of solutions for PFAS contamination. These themes collectively ensure a consistent and indispensable demand for Xylem's services and products, underscoring its long-term viability.
\nOperational Excellence and Market Integration Driving Value
\nXylem's commitment to operational efficiency, particularly through its 80/20 principle, is already demonstrating tangible improvements in profit margins. Furthermore, the strategic integration of Evoqua and the anticipated influx of public funding for PFAS remediation are poised to amplify these gains. These internal and external catalysts are crucial for the company's financial enhancement and market leadership.
\nNavigating Market Dynamics: Resilience in a Volatile Landscape
\nWhile certain market segments may experience temporary dips and trade policies present challenges, Xylem's foundational growth remains robust. The company operates within resilient end-markets, supplying non-discretionary services that are impervious to economic downturns. This inherent stability, combined with continuous internal improvements, positions Xylem for a sustained growth trajectory, making it an attractive long-term investment.
Embracing Value: A New Dawn for International Equities
Strong Quarterly Performance: A Testament to Value-Oriented Strategies
The second quarter of 2025 proved highly successful for both the Oakmark International Fund and the Oakmark International Small Cap Fund. The International Small Cap Fund delivered an impressive 16.99% return, marginally surpassing the MSCI World ex USA Small Cap Index's 16.82%. Similarly, the International Fund posted a solid 12.64% gain, outperforming the MSCI World ex USA Index, which rose by 12.05%. These results highlight the effectiveness of Oakmark's investment approach in the current market environment.
The Resurgence of Fundamentals: A Paradigm Shift Beyond US Borders
For over a decade, value investors, particularly those focused on international markets, observed as US growth and momentum stocks dominated. However, this trend, fueled by weak foreign currencies and escalating US growth valuations, appears to be unwinding. Recent shifts indicate a weakening US dollar and a moderation in the valuations of US growth and momentum equities. Concurrently, European equities, identified as undervalued, are demonstrating improving fundamentals, attracting renewed investor interest. This reversal validates Oakmark's long-held belief in the eventual return to fundamental valuation, suggesting that current market conditions offer substantial opportunities given the persistent valuation disparities.
Leadership Evolution: Preserving a Legacy of Excellence
Harris | Oakmark announced the departure of Mike Manelli, a distinguished veteran who co-managed the Oakmark Funds. His significant contributions as an analyst, investor, and partner, alongside his unwavering client focus, will be greatly missed. His successor, Tony Coniaris, the firm's Chairman and an experienced portfolio manager, will step into Mike's role as co-manager of the Oakmark International Fund and co-CIO of international equities. Tony's extensive background and leadership qualities ensure a seamless transition, reinforcing the firm's ability to maintain its rigorous investment philosophy and high standards of client service. This planned transition underscores the depth of talent within Harris | Oakmark, guaranteeing continued excellence in portfolio management and client advocacy.