Top fund manager David Herro is finding a lot of value in the unloved European region, as well as in Japan. In a recent letter to his Oakmark International shareholders, Herro said he had about 80% of the portfolio in Europe and 11% in Japan. “How we are positioned is really a function of where we are finding individual-company value,” Herro tells Morningstar. “I think it’s really important to realize that a lot of these European and Japanese multinationals have revenue streams and cash flow streams that are really sourced from all over the world. I think that is one of the anomalies that we try to take advantage of. People were scared of Europe, so they stopped buying European equities, even though many of those European companies have exposure to good areas of growth in Asia, even in Latin America, where some of the growth exists. And so, really, this is why we’re positioned the way we are in some of these markets.”