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July 21, 2019, 7:32 a.m. EDT

3 stocks that can make you money despite a trade war or recession

Brian Beitner of Chautauqua Capital Management names three companies he believes can easily navigate rough waters

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By Philip van Doorn, MarketWatch

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George Maris of Janus Henderson also likes ASML as a long-term investment, and in April discussed investors’ tendency to toss the stock overboard during frequent short periods when semiconductor stocks are out of favor.

The stock is part of the Euro Stoxx 50 and the broader Stoxx Europe 600 indexes.

Read: ASML Holding second-quarter net profit falls 18%

Temenos

Swiss-based Temenos /zigman2/quotes/210185457/delayed TMSNY +3.13% /zigman2/quotes/207982992/delayed CH:TEMN +3.71%  provides core systems to banks. If you think the industry’s consolidation makes this a difficult area for growth, think again: There are thousands of little banks and credit unions in the Europe, where the company does most of its business. And the nature of so much of the work in the industry, from data entry to regulatory compliance means there is tremendous room for innovation.

The annual sales growth on the table above is very impressive, especially in the financial services space. Beitner said that about 70% of Temenos’s new sales come from existing customers adding additional products or modules. “They are gaining traction in the U.S. and Asia,” he said.

One reason banks have been slow to innovate — sticking with tried and true mainframe systems and overnight processing for decades — is that it can easily take two years for even a small bank to move to a more modern core system. Beitner expects Temenos to continue to enjoy strong growth in its cloud-based real-time processing and customer-interface systems “as potential customers realize they are at a competitive disadvantage not to deploy their software.”

He called Temenos an example of a company that most investors haven’t yet heard of but is very well-positioned. With a market capitalization of $12.6 billion, it is part of the Swiss midcap index.

BYD Co.

BYD /zigman2/quotes/206867707/delayed HK:1211 +2.68%  stands for “Build Your Dream.” The Chinese electric car manufacturer also makes electric buses and batteries. Beitner said he has held the stock “off and on.”

Right now, he said he sees an excellent long-term opportunity for BYD, even though overall car sales in China have been “abysmal and getting worse” for a year and a half. Not only have electric-vehicle sales in China have been increasing but outside the big cities, China’s road system “is better than the one in the U.S., in many places,” he said.

“China has spent so much on infrastructure, it is truly world-class,” he said.

He also cited the influence of the Chinese government, which through its “Made in China 2025” plan seeks to become “the world dominator” in electric vehicles.

The Chautauqua funds are sitting alongside a well-known investor: Warren Buffett’s Berkshire Hathaway /zigman2/quotes/208872451/composite BRK.A -0.44%   /zigman2/quotes/200060694/composite BRK.B -0.69% owns 24.59%, according to FactSet.

Fund holdings

Here are the 10 largest holdings of the Chautauqua International Growth Fund as of March 31:

Company Ticker HQ Country Industry % of fund
Temenos AG /zigman2/quotes/207982992/delayed CH:TEMN Switzerland Information Technology Services 6.2%
Keyence Corp. /zigman2/quotes/206645759/delayed JP:6861 Japan Electronic Equipment/Instruments 5.4%
Novo Nordisk A/S ADR Class B /zigman2/quotes/203484366/composite NVO Denmark Pharmaceuticals: Major 5.1%
Naspers Limited Class N /zigman2/quotes/205954517/delayed ZA:NPN South Africa Specialty Telecommunications 4.9%
TAL Education Group ADR Class A /zigman2/quotes/203067931/composite TAL China Other Consumer Services 4.9%
Genmab A/S Denmark Medical Specialties 4.8%
DBS Group Holdings Ltd. /zigman2/quotes/204572323/delayed SG:D05 Singapore Regional Banks 4.8%
Toronto-Dominion Bank /zigman2/quotes/202133558/composite TD Canada Major Banks 4.6%
HDFC Bank Ltd. ADR /zigman2/quotes/205576242/composite HDB India Regional Banks 4.5%
Sources: Morningstar, FactSet

And here are the 10 largest holdings of the Chautauqua Global Growth Fund as of March 31:

Company Ticker HQ Country Industry % of fund
Temenos AG /zigman2/quotes/207982992/delayed CH:TEMN Switzerland Information Technology Services 5.5%
Nvidia Corp. /zigman2/quotes/200467500/composite NVDA U.S. Semiconductors 5.0%
Mastercard Inc. Class A /zigman2/quotes/207581792/composite MA U.S. Finance/Rental/Leasing 4.7%
Genmab A/S Denmark Medical Specialties 4.5%
Novo Nordisk A/S ADR Class B /zigman2/quotes/203484366/composite NVO Denmark Pharmaceuticals: Major 3.9%
Keyence Corp. /zigman2/quotes/206645759/delayed JP:6861 Japan Electronic Equipment/Instruments 3.8%
Incyte Corp. /zigman2/quotes/204510994/composite INCY U.S. Biotechnology 3.8%
Naspers Ltd. Class N /zigman2/quotes/205954517/delayed ZA:NPN South Africa Specialty Telecommunications 3.7%
Regeneron Pharmaceuticals Inc. /zigman2/quotes/203149337/composite REGN U.S. Biotechnology 3.2%
Source: FactSet

Fund performance

Both Chautauqua funds were established on April 15, 2016.

The Chautauqua International Growth Fund’s investor shares /zigman2/quotes/203948824/realtime CCWSX +0.56% have annual expenses of 1.05% of assets (considered “average” by Morningstar). The expense ratio for the fund’s institutional shares  /zigman2/quotes/209365367/realtime CCWIX +0.64%  is 0.80%, which Morningstar considers “below average.” Here’s how both share classes have performed against the MSCI All Countries World Index ex U.S. /quotes/zigman/210598083/realtime XX:892400 +0.69%  (in U.S. dollars) through July 12:

  Total return - 2019 Total return - 1 year Average return - three years
Chautauqua International Growth Fund - investor shares  19.5% -2.8% 8.8%
Chautauqua International Growth Fund - institutional shares  19.7% -2.5% 9.0%
MSCI All Countries World Index ex U.S. (U.S. dollars) 14.0% 1.3% 9.2%
Source: FactSet

The Chautauqua Global Growth Fund’s investor shares /zigman2/quotes/200950185/realtime CCGSX +0.49%  have annual expenses of 1.05% of assets and the expense ratio for the fund’s institutional shares  /zigman2/quotes/203951792/realtime CCGIX +0.49%  is 0.80%. Here’s how both share classes have performed against the MSCI All Countries World Index /quotes/zigman/210598083/realtime XX:892400 +0.69%  (in U.S. dollars) through July 12:

  Total return - 2019 Total return - 1 year Average return - three years
Chautauqua Global Growth Fund - investor shares  21.7% 0.4% 12.7%
Chautauqua Global Growth Fund - institutional shares  22.0% 0.7% 12.9%
MSCI All Countries World Index (U.S. dollars) 18.3% 5.9% 11.9%
Source: FactSet

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/zigman2/quotes/210185457/delayed
US : U.S.: OTC
$ 154.76
+4.70 +3.13%
Volume: 374.00
Dec. 13, 2019 10:45a
P/E Ratio
58.90
Dividend Yield
N/A
Market Cap
$10.55 billion
Rev. per Employee
$170,440
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/zigman2/quotes/207982992/delayed
CH : Switzerland: SWX
CHF 152.35
+5.45 +3.71%
Volume: 448,756
Dec. 13, 2019 4:50p
P/E Ratio
58.22
Dividend Yield
0.49%
Market Cap
CHF10.42 billion
Rev. per Employee
CHF166,422
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/zigman2/quotes/206867707/delayed
HK : Hong Kong
HK$ 38.25
+1.00 +2.68%
Volume: 3.93M
Dec. 13, 2019 4:08p
P/E Ratio
32.27
Dividend Yield
0.61%
Market Cap
HK$101.62 billion
Rev. per Employee
HK$707,751
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/zigman2/quotes/208872451/composite
US : U.S.: NYSE
$ 337,310
-1,490 -0.44%
Volume: 74.00
Dec. 13, 2019 10:40a
P/E Ratio
20.48
Dividend Yield
N/A
Market Cap
$552.34 billion
Rev. per Employee
$637,113
loading...
/zigman2/quotes/200060694/composite
US : U.S.: NYSE
$ 224.35
-1.57 -0.69%
Volume: 838,636
Dec. 13, 2019 11:05a
P/E Ratio
20.45
Dividend Yield
N/A
Market Cap
$552.47 billion
Rev. per Employee
$637,113
loading...
/zigman2/quotes/207982992/delayed
CH : Switzerland: SWX
CHF 152.35
+5.45 +3.71%
Volume: 448,756
Dec. 13, 2019 4:50p
P/E Ratio
58.22
Dividend Yield
0.49%
Market Cap
CHF10.42 billion
Rev. per Employee
CHF166,422
loading...
/zigman2/quotes/206645759/delayed
JP : Japan: Tokyo
¥ 40,050.00
+1,240 +3.20%
Volume: 864,400
Dec. 13, 2019 3:00p
P/E Ratio
46.03
Dividend Yield
0.37%
Market Cap
¥9412.51 billion
Rev. per Employee
¥88.74M
loading...
/zigman2/quotes/203484366/composite
US : U.S.: NYSE
$ 56.90
+0.40 +0.71%
Volume: 507,552
Dec. 13, 2019 11:04a
P/E Ratio
23.27
Dividend Yield
1.53%
Market Cap
$102.07 billion
Rev. per Employee
$409,726
loading...
/zigman2/quotes/205954517/delayed
ZA : South Africa
213,600
+6,100 +2.94%
Volume: 1.67M
Dec. 13, 2019 5:07p
P/E Ratio
N/A
Dividend Yield
0.33%
Market Cap
909.67 billion
Rev. per Employee
3.62M
loading...
/zigman2/quotes/203067931/composite
US : U.S.: NYSE
$ 45.96
+0.56 +1.23%
Volume: 412,152
Dec. 13, 2019 11:05a
P/E Ratio
136.29
Dividend Yield
N/A
Market Cap
$17.23 billion
Rev. per Employee
$81,533
loading...
/zigman2/quotes/204572323/delayed
SG : Singapore: SGX
$ 25.82
+0.32 +1.25%
Volume: 4.73M
Dec. 13, 2019 5:15p
P/E Ratio
10.63
Dividend Yield
0.00%
Market Cap
$64.91 billion
Rev. per Employee
$761,231
loading...
/zigman2/quotes/202133558/composite
US : U.S.: NYSE
$ 55.64
-0.03 -0.05%
Volume: 397,178
Dec. 13, 2019 11:05a
P/E Ratio
11.85
Dividend Yield
4.02%
Market Cap
$100.90 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/205576242/composite
US : U.S.: NYSE
$ 63.76
+0.32 +0.50%
Volume: 288,384
Dec. 13, 2019 11:05a
P/E Ratio
N/A
Dividend Yield
0.50%
Market Cap
$115.75 billion
Rev. per Employee
$178,409
loading...
/zigman2/quotes/207982992/delayed
CH : Switzerland: SWX
CHF 152.35
+5.45 +3.71%
Volume: 448,756
Dec. 13, 2019 4:50p
P/E Ratio
58.22
Dividend Yield
0.49%
Market Cap
CHF10.42 billion
Rev. per Employee
CHF166,422
loading...
/zigman2/quotes/200467500/composite
US : U.S.: Nasdaq
$ 224.23
+0.15 +0.07%
Volume: 5.29M
Dec. 13, 2019 11:05a
P/E Ratio
57.43
Dividend Yield
0.28%
Market Cap
$137.13 billion
Rev. per Employee
$882,428
loading...
/zigman2/quotes/207581792/composite
US : U.S.: NYSE
$ 294.48
+2.27 +0.78%
Volume: 1.01M
Dec. 13, 2019 11:05a
P/E Ratio
43.73
Dividend Yield
0.54%
Market Cap
$294.68 billion
Rev. per Employee
$1.01M
loading...
/zigman2/quotes/203484366/composite
US : U.S.: NYSE
$ 56.90
+0.40 +0.71%
Volume: 507,552
Dec. 13, 2019 11:04a
P/E Ratio
23.27
Dividend Yield
1.53%
Market Cap
$102.07 billion
Rev. per Employee
$409,726
loading...
/zigman2/quotes/206645759/delayed
JP : Japan: Tokyo
¥ 40,050.00
+1,240 +3.20%
Volume: 864,400
Dec. 13, 2019 3:00p
P/E Ratio
46.03
Dividend Yield
0.37%
Market Cap
¥9412.51 billion
Rev. per Employee
¥88.74M
loading...
/zigman2/quotes/204510994/composite
US : U.S.: Nasdaq
$ 91.16
-1.69 -1.82%
Volume: 581,935
Dec. 13, 2019 11:05a
P/E Ratio
49.12
Dividend Yield
N/A
Market Cap
$20.00 billion
Rev. per Employee
$1.38M
loading...
/zigman2/quotes/205954517/delayed
ZA : South Africa
213,600
+6,100 +2.94%
Volume: 1.67M
Dec. 13, 2019 5:07p
P/E Ratio
N/A
Dividend Yield
0.33%
Market Cap
909.67 billion
Rev. per Employee
3.62M
loading...
/zigman2/quotes/203149337/composite
US : U.S.: Nasdaq
$ 375.96
+3.80 +1.02%
Volume: 255,110
Dec. 13, 2019 11:05a
P/E Ratio
20.21
Dividend Yield
N/A
Market Cap
$40.86 billion
Rev. per Employee
$906,865
loading...
/zigman2/quotes/203948824/realtime
US : U.S.: Nasdaq
$ 12.55
+0.07 +0.56%
Volume: 0.00
Dec. 12, 2019
loading...
/zigman2/quotes/209365367/realtime
US : U.S.: Nasdaq
$ 12.61
+0.08 +0.64%
Volume: 0.00
Dec. 12, 2019
loading...
/quotes/zigman/210598083/realtime
XX : MSCI Global
552.19
+3.79 +0.69%
Volume:
Dec. 12, 2019 12:00a
loading...
/zigman2/quotes/200950185/realtime
US : U.S.: Nasdaq
$ 14.33
+0.07 +0.49%
Volume: 0.00
Dec. 12, 2019
loading...
/zigman2/quotes/203951792/realtime
US : U.S.: Nasdaq
$ 14.46
+0.07 +0.49%
Volume: 0.00
Dec. 12, 2019
loading...
/quotes/zigman/210598083/realtime
XX : MSCI Global
552.19
+3.79 +0.69%
Volume:
Dec. 12, 2019 12:00a
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Philip van Doorn covers various investment and industry topics. He has previously worked as a senior analyst at TheStreet.com. He also has experience in community banking and as a credit analyst at the Federal Home Loan Bank of New York.

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