Another Alpine holding, China Railway Construction Corporation, trades at a modest 7.5 times 2014 projected earnings. The company’s earnings growth should clock in at about 10% over the next couple of years as Chinese government reforms pave the way for increased project spending.
Turkey’s Tav Havalimanlari, one of the fund’s less-well-known holdings, constructs airport terminal buildings and operates airports in several locations, including Istanbul. The stock is currently trading at a significant discount to similar European companies because it could lose the concession for Istanbul’s airport after the government completes the construction of a new facility. “There is upside if Tav wins the new contract,” says Duitz. “And if it doesn’t, it will still be compensated when the old facility shuts down.”