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Why Artisan Funds Is Now Investing in Emerging Markets

Manager Dan O'Keefe explains the firm's change of heart and what stocks they've purchased.

Greg Carlson: Let's turn to emerging markets. This is an area where the funds traditionally haven't had much of a stake, but that stake has been increasing lately due to some stock-specific choices here. Perhaps we could touch on China and particularly, the consumer to the extent that you have a view on that, and talk a little bit about that in context of a couple of holdings in China, Baidu?

Dan O'Keefe: Right. So, you're correct in that we have not historically been large owners of emerging-markets assets over the last many years and that's a function primarily of valuation for many years. In the past 10, for example, emerging-markets assets were priced very highly by the market based on expectations of--remember the commodities supercycle and we remember the Chinese consumer stories, which you don't hear so much about today, I guess the bloom has come off the rose to some degree there. And as a result of the prices, we just weren't able to find anything interesting.