Seeking Value? Look to Tech, Venezuela: Fund Managers
One day after the market’s second-worst session of the year, two portfolio managers shared their best ideas for finding value in a volatile market with CNBC’s “Squawk Box.”
James Kieffer, a portfolio co-manager at Artisan Partners, said the technology sector is where “the best bang for the buck is available right now.”
The Artisan Value Fund’s top holdings include Berkshire Hathaway, Apple, Oracle, Cisco Systems, and Apache.
“I have a hard time understanding why you would not own Berkshire at these price levels,” Kieffer said.
He added that the fund picked up Apple shares at a nice discount before its stock climbed again and Kieffer subsequently decreased the fund’s position.
“It’s rather unique, in that you have a company with tremendous optionality that may still be early in a lot of its success, whether you talk about products or geographies, and you’re not being asked to pay a significant price for that in the market, so we still have involvement with the name,” he said.
Meanwhile, Fidelity Fund Manager John Carlson’s best idea comes from a country’s debt, which he described as “cheap and misunderstood.”
“My biggest overweight and probably my best idea is Venezuela,” he said. “I think the credit is really cheap. It’s yielding in the 12- to 14-percent range, and I think it’s credit with the ability to service its debt.”
Carlson added that he remains pretty constructive on the emerging markets and would not shy away from two of the biggest headline grabbers of late — Greece and Spain — once the coast becomes a little more clear.
“There’s going to be light at the end of the tunnel,” he said.
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Disclosure information was not available for James Kieffer and John Carlson.
Follow Katie Little on Twitter @katie_little.