Daftary to Take World by Storm

Star fund manager Manu Daftary is about to launch his first new mutual fund in a decade.

Quaker Global Growth, which may open as early as July 1, will give the market maestro free rein for the first time to invest in the fast-growing markets outside the U.S.

The Daftary says he's looking closely at emerging markets such as India, China, Russia and Brazil. He'll also be free to invest in developed markets. "It's global, so we can go anywhere," Daftary says. In actual dollar terms, China's growth last year nearly matched that provided by the U.S.

The news comes just as his original fund, domestic-focused (QUAGX Quote)Quaker Strategic Growth (QUAGX), shows it's back on track. Daftary has shrugged off a poor 2006 and is posting an 8.9% return so far this year.

That compares with just 5.4% for the S&P 500. The $700 million fund has one of the best track records anywhere since it was launched in November 1996. (I am an investor in the fund.)

What's the reason he's going global now? Put bluntly, Daftary believes America no longer offers the best growth. "The U.S. is slowing down, but the rest of the world is very strong," he says. "It's very clear to me that the U.S. economy is not contributing as much to global growth as it has in the past. But there is ample growth in overseas markets."