Separating the value from the story
Currently, the market’s ‘story’ for the global banks is not a positive one. Increasing regulation, the threat of fines and lawsuits, and a general investor-apathy have conspired to make banks an unpopular investment. Nick Kirrage, Portfolio Manager at the Schroder Global Recovery Fund, says it’s this negative story that’s created opportunity.
“Utilities are some of the most regulated entities in the world, yet several went up hundreds of percent in the 2000’s… Tobacco stocks faced a lot of ligation, a lot of fines; that didn’t stop tobacco stocks from going up almost 1000% over the last 15 years.”
In the short video below, Kirrage explains why disrupting the banks might be harder than is seems, and discusses the challenges with cryptocurrencies.
Further information about the Schroder Global Recovery Fund can be found here
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