Most value in European banking sector

Описание: MOST VALUE IN EUROPEAN BANKING SECTOR


ANCHOR QUESTION OFF-CAMERA (ENGLISH) SAYING:
Emerging markets off their lows recently that you're still little weary of that region right?
RIAD YOUNES, PORTFOLIO MANAGER, R SQUARED CAPITAL MANAGEMENT (ENGLISH) SAYING:
I mean we look around the globe to see where we feel we have the highest reward relative to risk. And we still believe Europe provides the best return relative to risk and this is where we are heavily exposed in our portfolio, in our fund and especially in the financial sector.
ANCHOR QUESTION OFF-CAMERA (ENGLISH) SAYING:
Within Europe are we talking about Germany and France are we talking about Spain and Greece?
RIAD YOUNES, PORTFOLIO MANAGER, R SQUARED CAPITAL MANAGEMENT (ENGLISH) SAYING:
All of the above but in the financial sector we are more focusing on Italy and Spain and Ireland as far as interesting opportunities on the financial sector perspective. But most companies, good companies in Europe are pan European even if its French or German, they don't just sell in Germany, they sell in, they have European exposure. Only the banks tend to have more nationalistic and the telecom operator as well.
ANCHOR QUESTION OFF-CAMERA (ENGLISH) SAYING:
And what is the opportunities specifically we're still seeing some deleveraging in Europe correct?
RIAD YOUNES, PORTFOLIO MANAGER, R SQUARED CAPITAL MANAGEMENT (ENGLISH) SAYING:
Correct. So that's the most important part, attractive part is not the huge growth you're going to see from lending and borrowing. You know there's going to be slow. The key issue is valuation. Many banks are trading at tangible bulk and below tangible bulk. And one of the benefits of the crisis is now we have even fewer banks than before and the big banks are even bigger, so therefore in a more consolidated market you should have much higher upside potential in the future.