Bargains in Consumer Discretionary
Even if the consumer environment gets only marginally better, names like Gap and J.C. Penney could be significantly undervalued versus the market at their current prices.
Courtney Dobrow: Well, digging into the portfolio a little bit, you have a pretty significant consumer discretionary exposure in the fund, and few of the new names in the portfolio this year are retail names; Gap and J.C. Penney. I'm curious to hear your theses on both of those.
Stan Majcher: Sure, I think, when you look at the Mid-Cap portfolio, about 20% is consumer discretionary, and I think people extrapolate that to, "Well, we must have a certain opinion on the economy."
Courtney Goethals Dobrow does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.