Appearing on CNBC’s “Closing Bell” on Monday, Oakmark Funds’ David Herro (Trades, Portfolio) discussed the sectors he believes will deliver strong returns.
The guru, who manages the Oakmark International Fund and is Harris Associates’ chief investment officer of international equities, highlighted the valuations behind some of the fund’s largest holdings, which include European banks and automakers like Intesa Sanpaolo (MIL:ISP, Financial), Bayerische Motoren Werke AG (XTER:BMW, Financial), Daimler AG (XTER:DAI, Financial), BNP Paribas (XPAR:BNP, Financial) and Allianz SE (XTER:ALV, Financial).
“When you look at the valuations of these companies versus their cash flow streams, especially when we are entering into an environment with global reopening of the economy causing fairly robust growth…these are big, blue-chip companies that should benefit quite greatly,” he said.
Herro also emphasized that “these areas and these companies represent value propositions” in the current environment.
Watch a segment of the full interview below.
