Yahoo! News quotes Chautauqua Capital's Beitner on investing in Europe (CCGIX, CCWIX)

Brian Beitner, CFA, Managing Partner of Chautauqua Capital Management – A Division of Baird, recently provided his insights about investing in Europe in a Yahoo! News story titled "Should Investors Look at Europe for Bargains?"


Brian Beitner, manager of the Chautauqua Global Growth fund (ticker: CCGIX) and the Chautauqua International Growth Fund (CCWIX) for Baird in Boulder, Colorado, says slower economic growth means "European equity valuations are not as compelling as the relative underperformance would lead you to believe."

Investors should be choosy. Beitner says that means investors who want exposure to European equities need to be selective. For example, the firm favors European companies whose sales come outside the European borders, where economic growth is more robust. 

"The opportunity to invest in Europe in our eyes comes from the notion that you have advantaged-companies that have world class management, world class IT, an educated workforce at their headquarters, (and) a very low cost to borrow," he says. 

"When they tap into higher growth markets it's the best of both worlds." 

Examples of companies using that strategy are pharmaceutical companies Novo Nordisk (NVO) and Roche Holdings, semiconductor firm Arm Holdings (ARMH) and Swiss banker Julius Baer, which Baird holds, Beitner says. These are also large-cap companies and market-share leaders in their segments.

Because of the European Central Bank's highly accomodative monetary policy, 10-year government bonds are around 0.14 percent, which makes financing easier, he says. 

Some also have prestige part of their brand.

"Julius Baer is a pure-play Swiss private bank," Beitner says. "You have to be in Switzerland to be in a Swiss bank. There's a cachet to being a Swiss bank."


This is not a complete analysis of any company, sector or industry and an investment should not be made on the basis of this article alone. Investments in the securities of foreign companies may expose investors to additional risks such as adverse tax consequences and additional volatility. Please refer to the prospectuses for more information about the funds.