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Indirect Access to Developing Markets

Andrew Gogerty

Gogerty: You know, your international fund has historically been the blue chip, non-U.S. stocks. Are you looking at emerging markets are kind of given as to what is going on here? What is your sense of potential value there versus what you have been doing historically? Given that, like you said, these are unprecedented times right now.

Senser: I think if you look across the globe, you see excellent valuations, whether you look at the developed economies and some of the emerging markets. We think that you can access the emerging markets through some of the companies who have large business operations there, so a Toyota Motors, a Pernod Ricard, in terms of luxury spirits, both have large Asian sales bases. In addition to that, we have large positions in energy, which would benefit from improving per capita demand for energy as the emerging markets recover.

And we have direct investments in some of the emerging markets. We have direct investments in some Chinese companies, for example. We play the emerging markets where we can recognize value, find good value, and good individual positions. We can use a lot of different methods to assess the potential there.