Strategic investing in Europe

Trimark's Michael Hatcher favours companies with a commanding presence.

Sonita Horvitch 7 March, 2012 | 7:00PM
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Michael Hatcher, director of research and a portfolio manager at Trimark Investments, says Europe's macroeconomic difficulties are likely to persist for some time, so the challenge is to invest in companies that can weather the storm.

His strategy for the European equity portfolio that he manages is to invest in European-based global companies with a commanding presence in their markets. Companies whose businesses are exclusively European are considered too, he says, with a focus on those that operate in niches that are immune to Europe's financial turbulence. On average, the companies in Hatcher's European portfolio earn about 35% of their revenues from Europe.

A key investing theme, says Hatcher, is to focus on producers of goods or services that are "affordable luxuries and involve repeatable purchases." These businesses are "to some extent, sheltered from the weakness in the European economy and elsewhere." They are able to produce consistent cash flow, "which is an important emphasis of mine" and tend to be found in the more defensive sectors of the equity market.

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Sonita Horvitch

Sonita Horvitch  

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