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TIAA-CREF makes a bullish bet on Europe

Adidas store in New York
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More shock-waves rippled across Europe Tuesday as EU leaders clashed on how to best handle the migrant crisis sweeping its borders.

The European Union's nearly 20 year old free-travel zones - known as the Schengen zone - appeared to be unraveling this week, as EU nations reintroduced stricter border checkpoints to try and deal with the thousands of migrants flowing mainly from war-torn Syria and Africa.

Read MoreEurope in disarray?

New figures estimate 1.3 million migrants could enter Europe by the end of this year, up from a previous forecast of 800,000.

But the escalating human and economic toll has not deterred one portfolio manager from Europe.

Chris Semenuk, who oversees the TIAA-CREF International Equity Fund told CNBC's "Power Lunch" Europe remains his favorite place in the world to invest.

"What the migrant crisis does is highlight Germany as a nation of strength and leadership. They are taking the lead by stepping up to the plate, and telling the world the influx of migrants is not as massive a problem one might think."

In addition to betting on the EU's leadership, Semenuk is bullish on Europe's for many other reasons.

"It is a much better alternative than the U.S., which is extremely overpriced. Europe is earlier in its earnings cycle than the U.S., so there is still room for EPS to improve."

In addition, a weaker euro will be an earnings tailwind for European companies."

Semenuk believes these factors combined with ECB president Mario Draghi's willingness to increase the scope of European QE will further support continued asset allocation flow from an overcrowded U.S. into Europe.

"Simply put," Semenuk said, "investors need to ignore geopolitical headlines and focus on individual names."

Semenuk's top European blue chip picks include Swiss multinational food and beverage conglomerate, Nestle S.A., German athleticwear maker, adidas AG, Sky PLC, a pan-European satellite and media conglomerate and Paris-based Accor, S.A., which operates the Sofitel, Novotel and Adagio hotel chains.