Comparing Domestic and Foreign Opportunities
Third Avenue CIO and Small-Cap Value manager Curtis Jensen discusses the portfolio's overseas focus areas and the need for patience in Japan.
Comparing Domestic and Foreign Opportunities Jason Stipp: Looking at your portfolio, at least the data that we have from a little while back should about a third of your holdings in foreign stocks. A lot of the main interest, we've spoken with the fuse sort of go-anywhere managers and they have been seeing a lot of opportunity overseas. So, from what you’ve been finding, are you seeing that potentially we may be have more opportunity overseas? Or how would you characterize domestic versus foreign right now? Curtis Jensen: The composition of the portfolio is really driven by our bottoms up research process, in other words it's not a top-down macro decision. Today, the portfolio has three primary areas of focus. We have two names in Japan. There are three European names and a handful of names in Canada. So again, all of these investment decisions were driven by our bottoms up research process. The evaluation today is as much more balanced I suppose with a one exception being Japan and we can talk a long time about whether Japan is a valued trapper. But it is at an extreme under evaluation by almost any measure. And so, we remained patient there with those holdings. And you know we don’t have a bias one way or the other foreign versus domestic. We’re just looking for things that meet our strict criteria.