Mr. Bruening: Renaissance Investment is a boutique investment manager firm located in Cincinnati, Ohio. We have been in business since 1978 and are an affiliate of the Affiliated Managers Group, which is a publicly traded holding company. In addition to international portfolios, Renaissance manages large-cap, mid-cap, small-cap and tactical accounts. I am responsible for the international strategy and have been the lead portfolio manager since 2000. We currently have about 5 billion under management company-wide, catering to institutional, sub-advisory and high-net-worth clients.
The firm's investment philosophy focuses on creating portfolios consisting of high-quality growth companies. Our proprietary investment process utilizes a two-step process, combining an initial quantitative screening process and overlaying this with fundamental analysis.
TWST: What has investing in international equities been like during these past 12 months? Perhaps you can take us through the events and the volatility in the markets and overseas markets.
Mr. Bruening: Well, certainly the 12 months have been very volatile; 2008 was probably the worst year for international investments since at least the mid-1980s. Developed markets were down on average over 40% and emerging markets sank over 50% in 2008. However, the rebound seen since the March lows has been equally as dramatic, with the markets rallying 80% to 100%. Almost every central government has implemented some form of fiscal stimulus in an effort to spur their local economies. I think the thought process in 2007 was how decoupled the world had become. But the events of last 18 months have shown us that the close relationship of various global financial markets has actually increased.
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