One question we are often asked is: why bother with international investments? We understand this concern, considering that for a long stretch of time, the U.S. has outperformed the rest of the world. Jeremy Schwartz discusses why we believe in the long-term benefits of investing globally.
Our International Hedged Quality Dividend Growth Fund (IHDG) screens for high-quality companies, often resulting in very light exposure to the beleaguered Financials sector. Jeff Weniger explains how this helped IHDG outperform the MSCI EAFE Index during the crash.
Over the past few years, many investors have avoided developed international equity markets for a variety of reasons: anemic growth, disappointing economic data and geopolitical uncertainty. Brian Manby discusses reasons why investors should be optimistic about international equities again.
In his 2018 letter to Berkshire Hathaway shareholders, Buffett wrote that stock performance converges with business performance over time if the original purchase price is not excessive. Jeremy Schwartz and Kara Marciscano make the case for our quality dividend growth strategy, with aggregate profitability that is comparable to Berkshire’s equity portfolio and a valuation below the S&P 500.
We think investors should consider maintaining exposure to developed international equities in the current market environment. Currency hedging and small caps could be considered two important themes to help investors generate excess returns and limit downside risk across developed international markets.