Harris fund manager taps Asia and Latin America stocks
By Matt Andrejczak, CBS.MarketWatch.com
Nov. 11, 2004
SAN FRANCISCO (CBS.MW) - From his desk in Ft. Lauderdale, Fla., Francisco
Alzuru looks afar for investment opportunities, conferring with his market
analysts in Moscow and Hong Kong in search of worthwhile stocks to buy.
Alzuru, co-manager of the Harris Insight Emerging Markets fund (HEMZX: news,
chart, profile), says the portfolio now is more focused more toward Asia and
Latin America than Europe, Africa or the Middle East.
"Asia is witnessing a long term shift in world consumption," said Alzuru,
who soon plans to visit companies in China and India. "Consumers are willing
and ready to step up to the plate."
Alzuru is looking to Johnson Electric Holdings, DBS and America Movil, among
others, to boost his $300 million portfolio's return.
The fund's Class A shares rose 15 percent over the year through Nov. 9,
lagging the 21 percent gain for the emerging markets category, according to
fund tracker Lipper. Its three-year annualized 20 percent return also trails
the 23 percent return for its peers.
One favorite is Johnson Electric Holdings (JELCY: news, chart, profile), a
Hong Kong-based maker of micro motors that power everything from kitchen
appliances to rearview car mirrors to DVD players.
Over the next five years, Alzuru sees Johnson Electric's sales growing at a
10 percent clip. "They are the industry leader in our opinion," he said.
U.S.-traded shares of Johnson Electric Holdings added 15 cents to $10.10 on
Wednesday
Singapore-based DBS Group Holdings (DBSDY: news, chart, profile) is another
of Alzuru's preferred investments.
DBS is one of the largest banking companies in Southeast Asia. Alzuru
projects DBS will boost its consumer banking business and widen its profit
margin to 58 percent, up from 43 percent, over the next five years by
cutting expenses.
Shares of DBS Group Holdings added 50 cents to $39 on Wednesday.
In Latin America's growing cellular phone market, Alzuru likes America Movil
(AMX: news, chart, profile), the No. 1 telecom in Mexico and the No. 2
player in Brazil.
"It is a very fast growing company, he said.
America Movil has been building market share in Latin America through
acquisitions from large operators such as BellSouth, AT&T and Bell Canada
International.
Shares of America Movil finished Wednesday up 9 cents at $44.28.
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