Baidu Inc (ADR) (NASDAQ:BIDU) is a Chinese company that is the most commonly used to search online in China. The company seems to be one of the favorites of Justin Leverenz, director of Emerging Markets Equities and he loves investing with search engines around the globe.
Leverenz was on CNBC and discussed his top global picks where Baidu Inc (ADR) (NASDAQ:BIDU) remained at top among the top five. Interestingly, most of them were companies that operate in the search engines segment. Here is what he looks in company before he invests:
“We look across the world for extraordinary companies, incredibly rare. “
He said that currently the opportunities in China are really good and fascinating. Though Leverenz added that there is a lot of controversy in China about the sustainable growth and the banking sector and this, according to him makes investment really interesting in China as the prices look exciting due to the controversy.
When he was asked about the top holdings he has and if anyone of them was Chinese, Leverenz said that more than 20% of his fund is in China and the largest holding in this fund is Baidu Inc (ADR) (NASDAQ:BIDU). The reason h chose Baidu Inc (ADR) (NASDAQ:BIDU) is because the company has an extraordinary reach to the Chinese people and it accounts about 80% of search queries in China.
While Baidu Inc (ADR) (NASDAQ:BIDU) tops the list, Yandex NV (NASDAQ:YNDX) is on the third position. Naver Corp is another search engine based company that features in the list of the holdings Leverenz owns. Naver is a Korean search engine, which also provides internet services and travel services and he feels that the company has tremendous growth potential. So it seems that Leverenz really likes search engines and especially the emerging ones.