Oakmark International Fund: David Herro
Oakmark International Fund, a Chicago based Hedge Fund, managing close to $ 8 billion, is betting big on European banks.
With the Euro at a two-year low, Greece on the brink of an impending disaster, Spain and Italy in increasing troubles, Oakmark has invested close to a billion dollars in European banks, more specifically BNP (France), Banco Santander (Spain), Intesa Sanpaolo (Italy) and the Bank of Ireland.
This calls for guts, which the fund manager Mr. David Herro (crowned by Morningstar as the international stock fund manager of the decade in 2010) seems to have in large proportions. His approach is strictly "bottom up investing". However, the results have to be seen when the European drama plays itself out fully in the next few years.
He actually explains his approach and mentions the banks that are available at an attractive valuation. Link to video: http://www.bloomberg.com/video/93636895-herro-on-investing-in-european-financial-stocks.html
Mr. Herro has a history of going behind such crises - an example is the Asian financial crisis of 1998 when he cherry-picked value stocks in Malaysia, Singapore and South Korea, which subsequently paid off rich dividends. Mr. Herro rather invests like a business owner, focussing on free cash generated by a business and looking for well-managed companies, with corporate governance in place.
Their philosophy "Value Investing drives everything we do at Oakmark" got me interested and their website, http://www.oakmark.com/, is pretty informative.
Invictus.
With the Euro at a two-year low, Greece on the brink of an impending disaster, Spain and Italy in increasing troubles, Oakmark has invested close to a billion dollars in European banks, more specifically BNP (France), Banco Santander (Spain), Intesa Sanpaolo (Italy) and the Bank of Ireland.
This calls for guts, which the fund manager Mr. David Herro (crowned by Morningstar as the international stock fund manager of the decade in 2010) seems to have in large proportions. His approach is strictly "bottom up investing". However, the results have to be seen when the European drama plays itself out fully in the next few years.
He actually explains his approach and mentions the banks that are available at an attractive valuation. Link to video: http://www.bloomberg.com/video/93636895-herro-on-investing-in-european-financial-stocks.html
Mr. Herro has a history of going behind such crises - an example is the Asian financial crisis of 1998 when he cherry-picked value stocks in Malaysia, Singapore and South Korea, which subsequently paid off rich dividends. Mr. Herro rather invests like a business owner, focussing on free cash generated by a business and looking for well-managed companies, with corporate governance in place.
Their philosophy "Value Investing drives everything we do at Oakmark" got me interested and their website, http://www.oakmark.com/, is pretty informative.
Invictus.
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