18
This year, the top-selling category is foreign
large-blend. So, I thought I would help you find some
foreign large-blend funds that are a little off the
beaten path by diving into our smallest Morningstar
Medalists in the category.
Bronze-rated
Neuberger Berman International
Equity
NIQVX
is a real hidden gem under Benjamin
Segal. This $
1
.
1
billion fund takes an opportunistic
approach to find out-of-favor bargains. Segal takes
an all-cap approach in his search for steady growth
and modest prices. Segal has a strong record,
topping
98%
of peers since he took over in
2003
.
However, this fund's record doesn't capture the
full record beacuse of a merger.
Litman Gregory Masters International
MSILX
is a
$
1
.
6
billion fund that we recently lowered to Silver
because of Amit Wadhwaney’s departure. The fund
has seven subadvisors that select a focused portfolio
of stocks. Despite the loss of Wadhwaney, it still
boasts some great managers, such as David Herro of
Oakmark, the Northern Cross team that runs Harbor
International, Bill Fries and Vinson Walden of Thorn-
burg, and Jean-Marc Berteaux of Wellington. I’m not
as big of a fan of James Gendelman of Marsico, but
that’s still a great lineup rolled into one fund. The
final manager is Mark Little of Lazard—we don’t rate
a fund he runs, so I don’t have an opinion there.
I like how this fund lets investors diversify through
different strategies.
Longleaf Partners International
LLINX
merits a
Bronze rating because of our high opinion of the
managers at Longleaf. Mason Hawkins and Staley
Cates, who run the firm’s domestic funds, are also
managers here. But a key difference is that two over-
seas managers, Scott Cobb and Ken Siazon, also
have a big impact on the portfolio. Those two were
named managers in
2010
and have a good record
so far, and Cates and Hawkins have strong records
over a much longer time. The main caveat, though,
is that the fund has a very focused portfolio that’s
best suited to investors with a
10
-year time horizon
or more.
Causeway International Value
CIVVX
rates a Gold
for its strong management team and solid process.
Sarah Ketterer and Harry Hartford boast an excellent
13
-year record at this fund and had a good record
at Hotchkis
&
Wiley before that. The fund doesn’t own
any emerging-markets stocks because they want
to let clients decide their emerging-markets expo-
sure on their own. They make contrarian investments
in controversial value names like
Toyota
amid its
recall problems or
Allied Irish Bank
amid the credit
crisis. As you might guess, that means they have
had some bumps along the way, but they’ve been bril-
liant over the long term.
Manning & Napier World Opportunities
EXWAX
offers the stability of a large team of managers. A
13
-member team oversees all of Manning
&
Napier’s
funds, and it is supported by
32
analysts. This Gold-
rated standout blends stock selection with top-down
analysis to build a portfolio of three stock types:
strategic profile companies with wide moats, bank-
able deals that are deep-value plays, and cyclical
plays. Those stock types lead the team all over the
map. The current portfolio has a sizable energy
bet that’s had mixed results so far, but we remain
confident in the fund.
œ
Free Webinar:
7
Under the Radar Funds
July
15
|
4
:
15
p.m.
ET
You know about great funds like Fidelity Contrafund and Vanguard
Total Stock Market, but the investing world doesn’t end there. There
are quite a few hidden gems out there. Smaller funds have greater
flexibility and we’ve found some great managers who can make the
most of it. Russ will share 7 of these fund ideas and explain what
their competitive advantages are.
Register here:
Foreign Funds Below the Radar
Tracking Morningstar Analyst Ratings
|
Russel Kinnel
What Are Morningstar
Analyst Ratings?
Our ratings are chosen for long-
term success. Analysts assess
a fund’s competitive advantages
by analyzing people, process,
parent, performance, and price.
They do rigorous analysis and
then submit their ratings to a
committee that vets their work
for thoroughness and consistency.
