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By Holly Cook | 06-09-2011 11:22 AM

Allen: Different Opportunities in a Post-Crisis Market

Fidelity's Tom Allen says the downturn may have slowed growth in some areas, but has raised it in others. Plus, he comments on Longtop Financial and overseas opportunities.

Holly Cook: I'm Holly Cook for Morningstar, and I'm joined here at the Morningstar Investment Conference by Tom Allen. He is a Fidelity portfolio manager of the Advisor Mid Cap Fund amongst others.

Tom, thanks very much for joining me.

Tom Allen: My pleasure.

Cook: I attended your panel discussion earlier and one of the key focal points of the Conference so far has understandably been the health--or ill-health rather--of the U.S. economy. Is that hindering your ability to find opportunity within U.S. mid-cap or is it actually kind of presenting more opportunities?

Allen: Well, I think it's fair to say that the collapse may have changed behavior. People maybe a little bit more likely to save than spend. So, it's just a different sort of opportunity. I think that people may keep their car for a year longer than they did before and maybe the auto retailers get a boost because of that. They will be able to sell more parts to garages, because the age of the fleet in the United States, it gets a little bit older than it does on average. So, it means there is different type of opportunity in the next five years than perhaps the five years leading up to the collapse in '08-'09. So, themes that I have been interested in over the past couple of years have been trade-down stories--the auto retailers might fall into that category--off-price retailers that sort of thing.

And likewise the Internet, even though the valuations have run up a long way, if the pie is not growing that fast, that's an example of an industry that's gaining share, so it might be that the slice in the pie might get bigger even though the pie may not be expanding that much.

Cook: And you actually invest beyond the U.S. shores as well. Are there any particular destinations that you are seeing value at the moment?

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