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Oppenheimer International Growth Fund Manager Robert Dunphy on how investors can boost their portfolios through foreign investments.
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What the markets here in the US are slipping no doubt about it as we inch closer to the fiscal cliff my next guest says -- -- of looking at what's going on here.
There are so many opportunities to invest abroad what would be -- -- point joining me now out of Fox Business explicit is Robert de C his Oppenheimer BP and portfolio manager.
Of the international growth fund and the ticker is OIGAX.
Year to date.
You're up 22%.
You're beating the markets which actually done pretty well nonetheless.
But you're doing it -- not even looking here by investing in foreign companies what's going on there that's actually better than here.
Well there are several factors I mean there's always that wall of worry that it's another phrase it's been mentioned before on the show.
And the fiscal cliff is part of that wall of worry it affects the equity risk premium.
But we're definitely seeing that there are still a lot of growth opportunities abroad now.
These opportunities don't necessarily have to come from emerging markets.
These can be companies that are domicile being very very slow growth areas like Western Europe.
They have great exposure to parts of the world parts of the economy they're still growing well so what.
-- in essence saying is that your criteria doesn't necessarily scare you -- from countries that might be in recession or close to it what cup France.
Or Germany but as long as they do business in areas where people are spending money right yeah.
And I think that's.
That's a point that's often miss by investors -- they've.
Fine and very understandably so they're very scared they -- moving to fixed income.
But they're missing a lot of good return to look at this chart here for the fun that you're going to be scared he has not been scared let's talk about what your widely -- -- No -- that you really happened here and you've got some names for example -- -- in -- Heineken Experian SEP we've had this.
It's co CEO the -- on -- lot here Carnival cruises which is based in part in in the UK so that's why it's considered a foreign name but.
What's -- you pick a stock in which to investors are obviously very careful when you do this.
You're right we're very careful we're sort of long term thematic growth investors what we're really looking to do.
Is to find these long term secular growth opportunities ones that aren't so macro economically.
Driven we sort of like to call ourselves micro economist.
And they're still pockets of growth I mean.
Data is a great example that -- Experian the company that you mentioned is this part of that growth.
In the management.
Of of data for credit scores well if you know that the song these are few of my favorite things sometimes -- you like the data elect the -- to step that had of course a US company doing beautifully excellent -- Telecom.
Luxury goods and what names in the luxury space do you look at say that fits my exact criteria.
We'll thing about luxury goods is -- you know you and I could start.
A company that made very high quality handbags.
But we could never be able to replicate in several hundred years of history that go into some of these brand names I'm thinking Louis Vuitton and thinking of other brands that really have that in -- share says -- she airmen as these things there.
Irreplaceable.
And they're also impossible to replicate.
But what that I -- again -- US company but -- Michael courses taken them on and he's just slightly lower than.
The -- when it comes to luxury but his price points are expensive it can be done.
Absolutely it can be done and there's lots of room for many different players there's.
Good brand equity all across that luxury spectrum and then you've got a huge number of people in the world.
Who not only are moving from subsistence to discretionary levels of income.
But also wanted to demonstrate Asia Pacific China absolutely they want to demonstrate that they've accomplish that as well.
And those luxury names are the perfect way for a lot of consumers to do that.
Folks he is unafraid it has been for the past several years -- done very well it's good to see Robert thank you -- -- -- -- having me YouTube.
Robert Duffy -- Oppenheimer international growth fund portfolio manager and VP closing bell.
