Herro Looking to the Market’s Unloved

Top fund manager David Herro is high on a number of unloved areas of the market — including Japanese stocks, luxury good makers, and much-maligned automaker Toyota. “One of the secrets, I think, to successful long-term investing is to really look for where the true values are,” Herro, Morningstar’s domestic fund manager of the decade, tells Bloomberg. “And where the true values are usually is where the momentum is not.” Herro also explains why he has underweighted the popular BRIC nations.