Herro Looks to Japan, Tech Stocks

Top fund manager David Herro is keen on Japanese stocks and technology shares as 2013 approaches.

“The year has the potential of being a very good year for stocks,” Herro tells Bloomberg. “One really has to look at Japan. It’s been the global equity market that has underperformed.”

Herro also says the underperformance of tech stocks has made for some nice bargains. “One area from an industry perspective is technology,” he says. “Technology shares have really lagged. In 1999, people were happy to pay 30, 40, 50 times earnings for some of these stocks. Now, many trade at 8, 9, 10, 11, 12 times earnings. They are still good businesses.”

Bloomberg also interviewed seven other top money managers about where they are looking in 2013, including Howard Ward of Gamco and Michael Shaoul of Marketfield Asset Management. To see a slideshow of their picks, click here.