In a recent CNBC interview, Oakmark portfolio manager Tony Coniaris shares insights on current valuations and investment strategy.

Here are some of his comments:

• “Valuations are higher than normal, but dispersions between stocks are also above normal,” he said, adding, “We’re still finding very attractive opportunities in a somewhat expensive market.”
• In response to a question regarding Treasury yields, Coniaris explained that Oakmark is a “bottom’s up, fundamental” investor: “We take a more passive view on what the market gives us in terms of interest rates. It’s our view that at some point in the future the bond market will very likely offer a positive real return. When that is is anybody’s guess.”
• With respect to Oakmark’s extremely short holding period for AirBnB, which it purchased at IPO, Coniaris explained that the company met all of Oakmark’s value investing criteria: “It’s run by great people. The IPO price was well below intrinsic value.” But since the stock reached Oakmark’s expected value within minutes after the IPO opened in the market, he said they sold it, “just as a discipline.”
• According to Coniaris, valuations in Europe are statistically lower than in the U.S., but he argued that they “should be worth less than the U.S. given the nature of the growth profile.” This is reflected, he said, in Oakmark’s global portfolios, which are currently overweight European stocks.