Amid Greek crisis, Trimark hedges euro exposure

Currency weakness benefits some European companies, says global team leader Michael Hatcher.

Sonita Horvitch 13 July, 2015 | 5:00PM

Michael Hatcher, head of global equities and director of research at Trimark Investments, says that while Greece's high-profile financial ills are taking a heavy toll domestically, they are likely to have little impact on the globally dominant businesses that he and his team invest in.

"Some of these businesses are headquartered in Europe and they could, in fact, benefit from a weakening euro," he says. "The challenge for Canadian investors in European equities is to insulate themselves from a falling euro." This can be accomplished through currency hedging, he adds.

The European equity market, although it recently pulled back in the wake of this crisis, has done well so far this year, he notes. The European and U.S. equity markets continue to be generally fully valued, he says. "This represents an ongoing challenge to a global value manager like myself." It remains difficult, he says, "to identify high-quality dominant businesses trading at a 30% discount to intrinsic value, and that is what I look for."

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Anheuser-Busch InBev SA/NV ADR52.53 USD-3.33
McDonald's Corp214.97 USD-0.67
Nielsen Holdings PLC13.55 USD-1.88
Philip Morris International Inc75.50 USD-0.41

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Sonita Horvitch

Sonita Horvitch  

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