Dodge & Cox on Rooting Out Value in Emerging Markets
Dodge & Cox's Charles Pohl and Diana Strandberg on the secular trends and richer valuations in developing markets, plus finding opportunity in Japan.
Dan Culloton: Are you seeing more opportunities overseas or domestically right now? If you were to look at the global-fund portfolio, you would say, oh, Dodge & Cox certainly must be finding some more opportunities overseas because it's about 60/40 overseas to domestic. Wondering if you would speak to that.
Diana Strandberg: Where we end up on a geographic basis is, really, entirely the result of individual, bottom-up decisions. And if we think about our mix of where we're outside the U.S. or inside the U.S., we'd really have to go industry-by-industry and company-by-company. I think that we see very, very attractive opportunities, both in the U.S. and outside the U.S., in health care, technology, and media. The universes are a little bit different. So you're able to, for example, outside the U.S., invest in companies that have very extensive reach into the developing world, in addition to having some companies that are directly domiciled in the developing world as well.
Dan Culloton has a position in the following securities mentioned above: DODFX. Find out about Morningstar’s editorial policies.