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Four-Star European Fund Manager: Time to Buy

European fund manager sees buying opportunities amid the sell-off.

Four-Star fund manager, Katrina Dudley of Franklin Templeton Investments, says she's looking for buys amid this week's big downturn. How is she picking her plays? Dudley looks for companies that "have got good strong free cash flow yields, good strong dividend fields, and companies that may be domiciled in the UK but really have revenues outside of that region."

"Royal Dutch Shell is a great example - it's a company that's focusing on generating free cash flow and generating returns for shareholders," says Dudley.

Dudley believes energy as a sector is attractive and that oil may have finally bottomed.

"I think that's a natural level that it needs to fall to. You could have short term spikes, in terms of you know there's a lot of volatility in this market at the moment, and I think that's what generates the movement in the oil prices," she says. The firm is bullish on Royal Dutch Shell and BP.

European financials are cheap, but Dudley believes it's for a reason, and the firm is more cautious on the sector.

"I think you have to look at the earnings power, the franchises [Barclays and Bank of Scotland] have been substantially impaired thanks to Brexit," said Dudley.

Overall,the four-star fund manager says there is an uncertain economic future in Europe and business spending was already staling in the region. On the bright side,Katrina believes the European consumer will be resilient through the British exit.

She is short Barclays and Bank of Scotland.