As bottom-up investors, we try to assess the potential risk/reward profile of each company in each country individually, in order to invest in those we believe to have the greatest long-term potential.
-Mark Mobius, executive chairman, Franklin Templeton
The media has been quite fixated on the beleaguered Eurozone, but there's a unique and often overlooked story coming out of some of Europe's emerging markets that interests me more. While much of developed Europe is still struggling to get its fiscal house in order, much of emerging Europe already has. Some of the emerging markets in Europe deserve to be a greater part of the European story, and in my view, can offer compelling investment opportunities at attractive valuations.
Many investors have the view that emerging Europe equals Eastern Europe. I view emerging Europe as all former Communist European countries, plus Turkey. We also look at Austrian companies when considering this region, since many companies in Austria have sales or operations in Eastern European countries.