Herro Goes Against Crowd, Keys on Europe

Top fund manager David Herro, who has beaten the market handily over the long haul by going against the crowd, is now keying on a couple very unloved areas of the world: Europe and Japan.

While many investors are focused on hot-growth emerging market areas, Herro’s exposure to emerging markets is just 7%, SmartMoney reports. Herro tells the magazine that when a sector gets hot, “people like the story — and we avoid those.”

“These days, while Herro stops short of calling emerging markets a bubble, he thinks European and Japanese blue chips are a better way to tap growth abroad,” SmartMoney reports, adding that Herro has about 60% of his fund invested in Europe. He believes the declining Euro will end up helping the economy there.

The article also discusses some of Herro’s past successful contrarian moves, and offers a few of his current picks.

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