Barron\'s 03.16.2020

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March 16, 2020 BARRON’S 19


“At times like this...


think about


balance-sheet


risk.”


Rupal J. Bhansali
CIO, International &
Global Equities portfolio manager
Ariel Investments
New York

inflation, I don’t see the bond market deteri-


orating much. The credit markets are where


I’d spend a lot of worry. Leverage in the sys-


tem is huge, and is kind of covered up. There


is a desire on the part of many institutions to


avoid mark-to-market; they love mark-to-


model. I’m talking about venture capital,


private debt, private equity.


Do any stocks appeal to you now?


“The market is


starting to get


attractive.”


Henry Ellenbogen
CIO and managing partner
Durable Capital Partners
Chevy Chase, Md.

I recommendedWalt Disney[DIS] at the


January Roundtable. It has gotten smoked,


down about 35% since then. I still like it.


And I still think some health-care names


will be good.Centene[CNC] andUnited-


Health Group[UNH] are two big holdings


we continue to like.Merck[MRK] is a big


player in vaccines; it potentially could be a


winner.Amgen[AMGN], which is big in


biologics, is another potential winner. Also,


the financial exchanges are likely to do well.


I own a lot ofCME Group[CME]. It tends


to protect you when the market is selling off,


and is almost a diversifier when the market


goes up. It’s a great company.—L.R.R.


RUPAL J. BHANSALI


Barron’s: How does the current crisis


compare with 2008?


Rupal J. Bhansali:On one hand, it is worse


than 2008, which was isolated to the hous-


ing sector with some spillover to the mort-


gage-backed securities market. This slow-


down—and the hit—are more widespread.


Many companies have taken on a lot of debt


in the past 10 years, as the cost of debt ser-


vicing was manageable. But debt has to be


repaid and refinanced. That will be exposed


in this cycle. The Fed could rescue the banks


in 2008. It can’t rescue the corporate sector,


so the pain will be more widespread among


the investor base.


A recession is inevitable, in my view. Mar-


kets weren’t paying attention to the risks of


the corporate debt binge, which I’ve been


“We don’t see a


global meltdown


similar to the


financial crisis.”


Sonal Desai
Portfolio manager and CIO
Franklin Templeton Fixed Income
San Mateo, Calif.


  • Jim Cullen, Chairman & CEO


For further information, please contact Schafer Cullen Capital Management


212.644.1800 • [email protected] • schafer-cullen.com


Schafer Cullen Capital Management is an independent investment advisor registered under the Investment


Advisers Act of 1940. This information should not be used as the primary basis for any investment decision


nor, should it be construed as advice to meet a particular investment need. It should not be assumed that any


security transaction, holding or sector discussed has been orwill be profitable, or that future recommendations


or decisions we make will be profitable or equal the investment performance discussed herein. A list of all


recommendations made by the Adviser in this strategy is available upon request for the 12 months prior to the


date of this report.


High Dividend Value Equity


Enhanced Equity Income


Value Equity


International High Dividend


Emerging Markets High Dividend


“Invest for the long term and


be disciplined about price.


The rest is noise.”


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