Front-Runners for International Manager of the Year

Earlier this week, my colleague Russ Kinnel highlighted some early favorites for our Domestic-Stock Manager of the Year. Today, we'll hit on some that have a shot at winning this year's award among the international set. As always, this is just an initial list of candidates, so it could change between now and the end of the year. And remember, we're not interested in an individual or team that's simply having a blowout year--we want candidates who have the staying power to succeed over long periods of time. In any case, here are those with an inside track to win this year's award.

James Doyle, Harry Hartford, and Sarah Ketterer
 Causeway International Value  (CIVVX)
When this team broke away from their former employer to start their own firm in 2001, we signed on hurriedly. After all, the trio has a history of making the right calls through different market cycles and stayed true to its philosophy during even the worst times. More importantly, in a crowded field, the managers have been willing to deviate in significant ways from the index even as they've avoided emerging markets. For example, the fund has substantial exposure to U.K.-based companies right now, which contrasts with rivals who are shying away from that market. The results speak for themselves.

Management Team
 Dodge & Cox International Stock  (DODFX)
The folks who run this fund are also in the running on the domestic side, so it should come as no surprise to anyone that they make the cut with their foreign fund, too. Unlike some rivals, Dodge & Cox's analysts compile their research on a global sector basis, so the same pool of analysts provides ideas for all the firm's offerings. That's in stark contrast to most firms, which have a clear delineation between domestic and foreign analysts. The system has worked well here, and like the Causeway fund, this one's appeal lies in its managers' willingness to entirely ignore the constitution of the index.

Matthew Dobbs, et al.
 Vanguard International Explorer  (VINEX)
Like most of the investment professionals employed by subadvisor Schroder, this fund's team takes a growth-at-a-reasonable-price approach, although it leans a bit more toward growth than value. Its veteran management team is experienced and draws on the research of more than 10 small-cap analysts. That's allowed for a lot of original research and subsequent success, all of which led to the fund's timely closing earlier in 2004. For those who own it, though, the fund has delivered nicely over time.

Bill Bower
 Fidelity Diversified International  (FDIVX) 
Bill Bower has made a lot of money for investors since taking over here. Using a growth-at-a-reasonable-price style, he willingly goes into different markets to unearth picks such as health-care firm  Alcon  that aren't owned widely among his peers. His work hasn't gone unnoticed, though, and assets have been pouring in, so it won't be easy to keep it up. Still, that doesn't take away from what he's delivered thus far.

David Winters and Tim Rankin
 Mutual Discovery  (TEDIX)
The managers hunt for bargain-basement stocks of all sizes, particularly in Europe and the United States. They also look to buy the debt of distressed companies and are active participants on creditors' committees as these firms restructure. The firm can hit a rough patch every now and then, but for patient investors, it tends to deliver the goods without much downside risk.

Amit Wadhwany
 Third Avenue International Value  
This fund is really young, but its manager has been around long enough for us to get comfortable with it. What's impressive about its showing in 2004 is the fact that Amit Wadhwany's adherence to Third Avenue's deep-value approach has left more than one quarter of the fund's assets in cash. Despite leaving this much money off the table, the fund is up more than 13% for the year to date. Like his colleagues at the firm, Wadhwany's got a knack for uncovering firms that few have heard of, let alone own. The fund's current 20% weighting in Norway is ample proof of its willingness to make money where few others tread. We wish the fund were much cheaper, though.