Market Missing the Value in Asset Managers
International Manager of the Decade David Herro on misvalued asset managers and his increasing interest in Japanese companies.
John Coumarianos: One can't help but notice that when one looks at Oakmark International, you have a fair amount of financial exposure, particularly to European and Japanese banks. I think Allianz, Daiwa, UBS, and Credit Suisse are among your top positions. How are you assessing the balance sheets of those firms now?
David Herro: Well, you have to very carefully. Because the balance sheet risk, of course, is the biggest risk in analyzing these financials or certainly has become the biggest risk in the last year or two. And to some degree, we've been very successful at it, but to another degree, we made a few mistakes.
John Coumarianos does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.