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Take note shoppers, because digital labels are the wave of the future, says Ralf Scherschmidt, portfolio manager for the

Oberweis International Opportunities Fund

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. Scherschmidt says the high-tech labels benefit both grocery store chains and their customers, which is why he owns shares of Swedish digital label maker

Pricer

.

"It has a significant value proposition to grocery store chains because it can centrally change prices in an instant," says Scherschmidt, who adds that from the customer standpoint, it allows the chains to create "happy hours" where store-owners can lower prices on some items during less crowded times.

Scherschmidt's $16 million fund, which garners 2 stars from

Morningstar

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, has lost 2.4% over the past year, placing it in the 16th percentile for all funds in Morningstar's Foreign Small/Mid Growth category. Over the past three years, the fund has returned an average of 22% annually, once again outpacing 84% of its Morningstar rivals.

Another stock in his portfolio is German car-part maker

Duerr

, which he says controls an 80% market share in the emerging markets.

"They are benefiting from the increased demand for cars in India, China and Brazil. And while the stock has been beaten down recently because of fear of an economic slowdown in these areas, the company recently reported numbers showing earnings growth of over 50% in the emerging world," says Scherschmidt.

Finally, outside of Europe, Scherschmidt likes

Anritsu

, a Japanese company that supplies the burgeoning smartphone industry with test and measurement equipment.

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