After a surprisingly bad year, international fundswhich sank an average of 45% in 2008could be ripe for big gains later this year, some managers say.
"We think 2009 will be a good year," Gary Motyl, chief investment officer of
"The market's not differentiating between quality stocks and those that aren't doing well," he said. "It's a great time to look at big, well-capitalized stocks."
Latin American funds suffered the worst drops in 2008, falling 60%. Despite this drop, three-year annualized returns were down just 2.4%.
Other managers see these declines as signs of the end of an era. "The myth of international decoupling has been put to rest," said Uri Landesman, head of global growth at