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Thornburg International Value Fund Managing Director Wendy Trevisani on why investors should consider companies with great potential outside the U.S.
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-- -- -- Let's get some other ideas a look at some global place went to trap the -- Thornburg international value fund managing director and co portfolio manager here with some names -- one but the French accent as we said LVMH.
Louis Vuitton Moet Hennessy and and why this one because this is a luxury play -- of people are worried are still have that.
Cloud of Spain Portugal who knows what over their heads what do you feel this one is really -- -- -- I think there are numerous reasons say the company is being us diversify and arguably highest and luxury I'm conglomerate.
That exists the valuation is extremely compelling.
In sort of -- that mid to low teens type of earnings on they own the core -- a -- brand.
It is only sold through their own channels they have a 100% control over the distribution you'll never find a live a time handbag on -- if you do.
-- -- -- real -- on death for they cosmetics company you know growing leaps and bounds double digit growth in that retail franchise a lot of exposure to the emerging market consumer.
So there's really -- I had a good reason telling us they -- -- -- air crew chief Marc Jacobs on -- -- I had very strong.
Cluster brands in the valuation is really unmatched.
Totally different feel to your next victim it's Carnival Cruise Lines and the way it.
Is managed to go into your international -- it is also listed in the in the UK as well right correct that's correct but -- that's up 13%.
Year over year you feel there's more room to run why.
I de L I mean again going back to valuations if you look at any sort of normalized earnings us companies attract and it operates in a virtual duopoly with Tom Royal Caribbean so.
The ability for them to price on to gain market share.
They.
They cut a lot of costs -- kind of offset as higher fuel.
Costs that are coming with higher oil prices.
And -- they really span the gamut of ads on consumer from their kind of mass market Carnival line to the very high and seaborne iron.
And the penetration of the cruiser is so -- it varies from 1% in Europe to 3% in the US that is a big.
Audience of potential people to travel on a cruise vacation which arguably is a more economic vacation.
Then getting on a plane hitting her -- that's sort of one stop shop and down -- are very interesting business model.
A year last -- make me smile because in my eight year old son's class every little boy is wearing the navy blue blue pants with The White Stripes on the side it was ever thus back when I was a kid a -- -- -- -- -- Lot you know what it's not still hot it's hot again I'm so it actually kind of lost its way -- -- -- -- market.
And I'm so happening here that because that is their target they are.
A big distant second -- -- in the US and one of their key mandates is to bring that markets are up and they're doing it through addressing the younger.
Clients -- the teenager.
You might not know this but in Europe in China and Russia they are by far the leader so globally they actually have a bigger markets -- -- -- just -- Weber.
-- and the valuation is quite a bit -- And the margins are lower but -- -- -- they're innovating.
The company's improving its brand equity.
And with that they're returning cash to shareholders in the form of the dividends and with that generally -- original love and appreciation of when I thank you Wendy to I remember that you bought -- don't do it -- -- shirts with the gap with a little triangle and the diamonds on a windy Travis obvious Thornburg international value fund managing director and co portfolio manager with -- next time think yeah.
