INSUBCONTINENT EXCLUSIVE:
By Lu Wang and Felice MaranzTime may heal all wounds
But the decade since the collapse of Lehman Brothers Holdings Inc
event seen widely as a catalyst for the global financial crisis, data on stock prices and fund positioning suggests the aversion to the
has yet to fully recover from the bear market
Money managers are shunning the industry
Banks were the most-avoided industry among hedge funds at the end of June, while mutual funds cut their holdings to a five-year low, data
officer of First American Trust in Santa Ana, California
rallied on to trade 80 percent above its 2007 peak
Once the biggest industry making up more than one-fifth of the market, financials have now fallen way behind technology
The carve-out of real estate in 2016 certainly hurt, but that only explained a fraction of the current 12 percentage-point gap to
tech.
Blame the underwhelming performance on regulations and the weakest economic recovery from a recession since World War II
While the requirements on shedding risky businesses and holding more liquid assets have made lenders better equipped to withstand financial
the third quarter, hedge funds tracked by Goldman Sachs had 10 percent of their assets in financial stocks, 4.5 percentage points below the
The past 10 years has marked a U-turn for banks in everything from capital and cost control to aligning executive compensation with
profits by 26 percent this year, roughly in line with the SP 500
Yet measured by revenue, its 4.8 percent expected growth trails all other industries but utilities and consumer staples, analyst estimates
compiled by Bloomberg show.
Trading at 16 times profits and 1.6 times book value, financials are ranked at the bottom of the pack in the SP
analyst at Susquehanna International Group LLP
