Hartch often takes names that have fallen out of favor. He recently bought Bed Bath & Beyond (BBBY), a retailer that dominates its niche. Last year the shares sank from around $74 to $55 as investors worried that Amazon.com (AMZN) would steal away sales. Hartch remains confident that Bed Bath & Beyond can keep its customers. "We have a high regard for the business," he says. "The fact that others had some concerns created an opportunity for us," he says.
Hartch cites Google (GOOG) as a favorite holding that is in both funds. The leading search company will remain dominant because it is a cost-effective vehicle for advertisers, says Hartch. "It would be extremely difficult for competitors to unseat Google," he says.
Both funds also own Novartis (NVS), the Swiss health care giant. The company has a long record for developing innovative products and selling them around the globe, says Hartch. The Swiss multinational's Alcon line has been generating growing sales by producing contact lenses and medicines for eyes.
The global BBH fund recently bought Pearson (PSO), a U.K. publisher that supplies books and online services to educational institutions. The company is struggling to make the transition from print to the digital world. But Hartch argues that Pearson ranks as a global education leader. "Demand will remain strong because schools in the U.S. and Europe need to achieve better outcomes at lower costs," he says.Follow @StanLuxenberg This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.