The Long View

David Herro and Rajiv Jain: Should US Investors Renew Their Passports?

Jul 9, 2024

Renowned investors David Herro and Rajiv Jain discuss international investing at the Morningstar Investment Conference. Topics include navigating challenges in international equity, geopolitical risks, Japanese market reforms, technology investing, and preferences in automotive manufacturers.

52:44

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Episode guests

Rajiv Jain

David Herro

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Episode notes

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Quick takeaways

Global diversification enhances equity resilience amid market cycles driven by corporate earnings.

Currency exposure management includes assessing fundamental value for strategic hedging and long-term gains.

Balancing investments in Chinese SOEs requires alignment evaluation, risk management, and policy adaptability for sustainable returns.

Deep dives

Benefits of Global Diversification in Equity Portfolios

Diversifying globally in equity investments offers resilience against market cycles, where corporate earnings ultimately drive returns. Despite past US outperformance, international markets like non-US equities show cyclical patterns, supporting long-term return similarities across regions.

Intro

2min

Navigating Challenges in International Equity Allocations

15min

Navigating Geopolitical Risks and Investment Opportunities

8min

Analysis of the Japanese Equity Market and Corporate Earnings Growth

2min

Japanese Market Reform, Technology Investing, International Stocks, and Economic Implications

21min

Investment Choices in Automotive Manufacturers

3min

Conclusion Segment with Subscription Information and Disclaimer

2min

And we are thrilled to have with us today two fabulous investors in global equities. David Herro is here from Harris Associates. He is a longtime portfolio manager at Oakmark International and Oakmark International Small Cap. Rajiv Jain, to David’s left, is here from GQG Partners, which he founded in 2016. Both of these gentlemen have strategies that are rated Gold by Morningstar’s Manager Research team. So, we’re really excited to have them here and to dig into international investing and the case for international investing.

Background

David Herro Bio

Oakmark International Investor

Oakmark International Small Cap Investor

Rajiv Jain Bio

GQG Partners Global Quality Equity

GQG Partners Emerging Markets Equity

International Funds, Interest Rates, and More

“Going Where the Value Is Greater: International Equities,” by David Herro, oakmark.com, Jan. 4, 2024.

“Bloomberg Interview: Rajiv Jain Spotlights Nvidia, Discusses Elections, India’s Potential, and China,” GQG.com, June 11, 2024.

“Fund Manager Rajiv Jain Takes $2.8bn Bet on Middle Eastern Stocks,” by Jennifer Hughs and Brooke Masters, ft.com, Jan. 14, 2024.

“The Harrowing Story of a Top Manager’s Biggest Investing Mistake,” by Gregg Wolper, Morningstar.com, Aug. 30, 2023.