Templeton Growth manager looks beyond the headlines in Europe

Company fundamentals outweigh Brexit fallout, says James Harper.

Diana Cawfield 18 May, 2017 | 5:00PM
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James Harper, lead manager of the value-style Templeton Growth, says he and his colleagues are looking beyond the negative news headlines overseas to find undervalued companies from a longer-term perspective.

"If you look at the European equity market relative to the U.S.," says Harper, executive vice-president, portfolio manager and research analyst at Templeton Global Equity Group in Nassau, Bahamas, "you've seen the most extreme, unsustained underperformance in about 50 years. There's clearly been a lot of fear, a lot of anxiety, but we're starting to see green shoots and more stability."

Harper believes that European equities are discounting a level of pessimism inconsistent with improving fundamentals. "We think there been a lot of Euro-skepticism," he says, "and overly discounted political-risk sentiment over the last six months or so."

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Alibaba Group Holding Ltd ADR151.02 USD-0.57Rating

About Author

Diana Cawfield

Diana Cawfield  Diana Cawfield is an award-winning writer who has been a regular Morningstar contributor since 2000. Her numerous publication credits include the Toronto StarAdvisor's Edge and Chatelaine, as well as the Canadian Securities Institute's online educational services.

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