This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Barrick Gold, Siemens Will Shine, Says Fund Manager

As investors focus on the European debt crisis, Paul Hechmer, portfolio manager for the del Rey Monarch Fund, is stepping up his investments in several defensive Japanese stocks as an alternative, holding stocks like Shiseido and Seven & I Holdings Co., owners of the 7-Eleven convenience store chain.

The $6 million fund, which was launched in June 2001, has lost 3% over the past month, better than 99% of its peers in Morningstar's foreign large-cap stock category.

"Any time you have a troubled market it's good to find companies with real strong balance sheets, real strong cash flows," Hechmer said. Aside from their impressive financials, Hechmer also likes the fact that both companies market to a mass audience with Shiseido being a luxury brand in the United States, but a household name in Japan.

And while he is overweight Japan as compared to Europe, Hechmer hasn't given up on the Eurozone entirely. For example, he sees a great deal of value in Germany industrial Siemens (SI), which he says has been oversold as a result of Europe's debt troubles and will benefit from a weaker Euro.

"Europe's way down and you can find some very good values over there. If you are worried about the currency then go buy a company that gets its currency outside of Europe," Hechmer said.

For those still worried about a global currency crisis, Hechmer suggests buying Barrick Gold (ABX). And while some believe the price of gold is in bubble territory, Hechmer says the mining companies have lagged the yellow metal's rise and have room to grow.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,987.51 -61.49 -0.36%
S&P 500 1,985.54 -11.91 -0.60%
NASDAQ 4,567.5980 -24.2080 -0.53%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs