Ms. Brodbar: Our portfolio is concentrated to just 20 companies, so we look for the winners in each sector. Ralph Lauren (RL) is a dominant lifestyle brand. Relative to other luxury players, it is still predominantly a U.S. brand, with 70% of its sales generated in the U.S. There is a huge opportunity for Ralph Lauren to expand overseas, where luxury apparel spending is projected to grow at a rate much faster than the U.S. About five years ago, the company bought back their European licensee and since that time have grown the business to north of $1 billion from just $200 million at the time of acquisition.
And we believe there is still room for solid growth. RL is now instituting the same strategy in Asia, as they bought back
Micheal A. Williams