Investors say stock picking works in India, Europe

By Emily Chasan and Alina Selyukh

NEW YORK (BestGrowthStock) – Betting on a recovery in Europe or on continued strength in emerging markets could yield lucrative bargains and be safer than standing pat in the United States and risking a double dip, hedge fund managers said on Tuesday.

While U.S. markets are perceived as more efficient, investors willing to look overseas for “undiscovered” companies — while also steering clear of currency fluctuations, corruption and political risks — could make some money, investors said at the Value Investing Congress in New York.

Amitabh Singhi, managing director at India-based Surefin Investments, which oversees $15 million, said he is betting on transportation, housing and infrastructure growth in the country.

“India is a very resilient country, you have 20 years of no electricity, no laws, crazy tax laws … and we survived,” said Singhi, who was born in India but earned his undergraduate degree at the University of Pennsylvania’s Wharton School.

As a play on that expected growth, he said he likes Indian engineering conglomerate Larsen & Toubro (LART.BO: ) (LTORY.PK: ), and agriculture-focused tire maker Balkrishna Industries Ltd. (BLKI.BO: )

He also fancies financial lenders such as Shriram Transport Finance Co Ltd (SRTR.BO: ), which helps Indians finance second-hand trucks for their businesses, and HDFC Bank Limited, (HDB.N: ), India’s largest mortgage lender.

Francisco Garcia Parames, who oversees about $6 billion at Spanish money manager Bestinver Asset Management, said Europe can provide some good opportunities because of the family-owned companies and the lower tax environment investors access by investing there.

“You have to be patient,” Parames said about Europe, adding it was not about investing in the value of the shares, but rather the value of the company.

Parames said he likes preferred shares of automaker BMW (BMWG.DE: ), industrial machinery maker Circor International Inc (CIR.N: ) and Spanish infrastructure giant Ferrovial (FER.MC: ). Parames said he stays away from cash and fixed income securities, and investors’ recent focus on liquidity is “overrated.”

However, he said he has been focused on avoiding the debt woes affecting the Southern Rim countries in Europe. “We don’t have a single cent invested in Spain, our own country,” Parames said.

Investors say stock picking works in India, Europe