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David Winters Seeing Some Bargains?

Kenster1_GlobalValue
edited July 2013 in Fund Discussions
David Winters on Wealthtrack
DAVID WINTERS: FIRST CLASS MERCHANDISE AT BARGAIN PRICES!

July 19, 2013

Emerging markets have substantially underperformed the U.S. stock market over the last two years. There is one area however where emerging markets, particularly those in Asia, South America and China continue to shine: demand for luxury goods. Bain & Company reports that the so called “HENRYs” (High Earnings, Not Rich Yet) consumers in those markets are becoming a “new baby boom sized generation” for luxury goods. That is the sweet spot for this week’s Great Investor guest, David Winters. Winters is the Portfolio Manager of the value-oriented Wintergreen Fund which he founded in 2005. Since inception this go anywhere, invest in anything fund has outperformed the market and its mutual fund category.
http://wealthtrack.com/all-programs/first-class-merchandise-at-bargain-prices/

Comments

  • scott
    edited July 2013
    I agree with Winters on emerging markets and the EM consumer, especially in regards to Jardine Matheson, which I continue to hold. I don't hold them, but also like Mastercard and Cielo (which I think is a very interesting company, although Winters is not as concerned about government regulation and something like Cielo as I am). MC I think less about EM consumers than the move towards digital transactions across the globe - the move towards digital transactions (mobile, etc) is really one of my favorite longer-term themes.

    I like the emerging markets consumer story, but there will be significant bumps along the way (see Brazil lately) and probably better chances to buy, especially some of the more volatile luxury names. Additionally, I think luxury and the EM consumer is a longer term story, whereas things like travel, nutrition/healthcare (as consumers in these countries have been moving up, they have been eating more - and more fast food, and as a result a number of health problems have gotten much worse in China and elsewhere; I think if EM consumers continue to move up, they're going to start thinking more about their health and nutrition), electronics/internet are a sooner-than-later EM story.

    I do agree with Winters' focus on the longer-term and trying to tune out the short-term, which I've been trying to be better about.

  • CharlesCharles
    edited July 2013
    I too have always liked Mr. Winter's investment strategy. Just don't like his 1.89% ER. I recently added to SIGIX.
  • STB65
    Being in Wintergreen for years, I always was afraid to dump a "great manager -- with high expenses", and I am decently positive for the time - until I checked his M* figures and returns against "world funds" to find that he trailed for the past 3 years (exceeds bogey for 5, however). Always hate to buy/sell "transaction fee" funds on TDA, but guess it's time to vote him off the island. He did mention "getting rich" a couple of times too many during his interview, since I couldn't help thinking that the one of us getting rich was the one being interviewed. Have some SIGIX; guess I'll have some more and hold the rest for an omen.
  • STB65
    Sorry, it's NTF fund. Either my memory is getting even more muddled, or it was TF when I bought it.
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