At 46% of assets, the U.K. represents the largest country weighting. Peak likes it because it is the biggest stock market in Europe and offers the broadest choice of companies.
One of the fund's largest holdings is global oil and gas company BP, which Peak began accumulating last summer in the wake of the infamous Gulf of Mexico oil spill when the stock was about half its April pre-disaster price. Since then, he's continued to build the position when market dips present a buying opportunity.
"Once fines and litigation issues are settled over the next 12 to 18 months, BP's future will become much clearer," he says. "In the meantime, we have a company whose asset value is double the public value of its stock, and it's trading at a discount to all of its peers."
France's Vivendi, a conglomerate involved in multiple industries such as cellular phones, pay television and gaming, exemplifies another contrarian play. "This hasn't been a terrific performer so far, and people are just bored with the company," he says. "But its public value is less than half what the sum of its parts are worth. And as we wait for investors to realize its value, we get a dividend yield of close to 8%."
With a stock market capitalization of $4 billion, African Minerals, a South African company listed on the London Stock Exchange, is one of a number of less-well-known public companies in the fund. The company plans to ramp up production of the steel ingredient iron ore in its Sierra Leone mines later this year. Two Chinese companies have significant stakes in its stock and mining assets.
Another mining company and top ten holding, European Goldfields, is listed on the London Stock Exchange but has significant mining operations in Greece, Romania and Southeast Europe. The company, which has a $3 billion market capitalization, is on track to become the largest gold producer in Europe over the next few years as it implements plans for mine expansion.