This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

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 - Get Report). 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.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
SI $0.00 0.00%
ABX $10.96 0.00%
AAPL $124.43 0.00%
FB $82.22 0.00%
GOOG $548.00 0.00%


DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

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