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!

Funds That Win in Foreign Markets

Cautious investors should consider MFS International Diversification (MDIX), which has finished in the top half of the foreign large blend category for seven consecutive years. The fund ranks as one of the most diversified portfolios available.

Portfolio manager Thomas Melendez puts his assets into five different MFS funds, investing 10% into MFS Emerging Markets Equity (MEMAX), 10% in MFS International New Discovery (MIDAX), a small-cap fund, 30% in MFS Research International (MRSAX), a large blend fund, 25% in MFS International Value (MGIAX) and 25% in MFS International Growth (MGRAX).

Melendez says that many investors fail to diversify their international holdings properly, overlooking small caps or other sectors. But MFS International Diversification provides a comprehensive menu, insuring that shareholders can prosper in many market environments. "If value stocks fall out of favor, you can still do well because you have some assets in growth," he says.

To hold growth stocks, consider Buffalo International (BUFIX). During the past five years, the fund lost 0.8% annually, surpassing 91% of competitors in the foreign large growth category.

Portfolio manager Bill Kornitzer looks for companies that can grow consistently for the next three to five years. Once he buys, he holds for long periods. The fund only turns over 29% of its portfolio annually, half the rate of the average peer.

A holding is Henkel (HENOY), a German maker of laundry detergents and skin care products. Operating worldwide, Henkel produces such brands as Dial soap and Purex detergent. "This company will never grow 20% a year, but the topline will grow consistently and the margins can increase," says Kornitzer.

At the time of publication the author held no positions in any of the stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Stan Luxenberg is a freelance writer specializing in mutual funds and investing. He was executive editor of Individual Investor magazine.
2 of 2

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!
ARMH $53.44 0.28%
SAP $69.85 -0.47%
AAPL $130.42 1.26%
FB $80.41 1.07%
GOOG $555.48 2.13%


DOW 18,214.42 -10.15 -0.06%
S&P 500 2,110.74 -3.12 -0.15%
NASDAQ 4,987.89 +20.7530 0.42%

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