Strategic investing in Europe

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

Sonita Horvitch 7 March, 2012 | 7:00PM

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.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

About Author

Sonita Horvitch

Sonita Horvitch  

© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies