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Breaking down bank bets: how top Euro equity managers are exposed

Breaking down bank bets: how top Euro equity managers are exposed

The potential for Greek banks to stay closed for the entirety of this week has raised questions in some corners about the fall out for the region’s wider banking community.

The story has swung from positivity about peripheral recoveries to concern about capital requirements putting pressure on margins, but how exposed are top managers?

In this analysis, Citywire Global looked at the top five performing fund managers and teams in the sector over the five years to the end of May 2015 to get a clearer idea of where vulnerabilities may lie.

5. Michael Constantis, BlackRock

Fund: BGF European Special Situations

Five year TR (June 2010–June 2015): 131.57%

Citywire A–rated Michael Constantis is the fifth best performing manager when it comes to European equities.  Just over 40% of the BGF European Special Situations fund is devoted to the UK. Switzerland is the second country exposed at 8.3%.

On a stock level, banking groups are also prominent with UK firm Lloyds Banking Group the fifth largest holding in the fund, at 2.67%. While, Italian firm Intesa Sanpaola is the ninth largest holding with 2.14%

4. David Robinson, Dalton Strategic Partnership

Fund: Melchior Selected Trust European Opportunities Fund

Five year TR (June 2010–June 2015): 132.90%

The fourth best performing manager over five years is Citywire AA- rated manager David Robinson, who manages the Melchior Selected Trust European Opportunities Fund.

Unlike his peers with a firmer stance in the sector, Robinson has actually moved away from banking in the past year. Between April 2014 and May 2015, he has decreased his holdings in the financial sector from 19.3% to 18.6%.

The Italian Fineco Bank currently makes up 2.5% of the fund and is the seventh largest stock, which is actually an alteration on his positioning from one year ago when no banks were in the top ten holdings of the fund.

3. Olgerd Eichler/Evy Bellet, MainFirst

Fund: MainFirst Top European Ideas

Five year TR (June 2010–June 2015): 134.56 %

Sitting in third place are Citywire + rated managers Olgerd Eichler and Evy Bellet, who devote over a third of their fund to the German market, with a strong emphasis on financials.

In total, 45.11% of the MainFirst Top European Ideas fund is invested in financial services, with the sector is the largest in the fund. This exposure is mainly focused on financial services rather than banks directly, with German group Aareal Bank AG being the only bank in the fund. A 4% position makes it the seventh largest holding in the fund.

2. Roderick Jack and Marcel Jongen, Adelphi Capital

Fund: Adelphi European Select Equity

Five year TR (June 2010–June 2015): 143.47%

In second place are Citywire AA-rated duo Roderick Jack and Marcel Jongen. They held just one bank in their top 10 positions, according  to the fund factsheet from March 2014, which was Danske Bank.

According to the most recent available data, the duo dropped exposure from 17.7% in financials to around 12% at the end of 2014. This included a very minor position in Danske, as well as an equally small position in fellow Nordic group Jyske.

1. Oliver Kelton, Waverton/Odey

Fund: Waverton European Fund

Five year TR (June 2010-June 2015): 176.37%

Leading the field is Citywire AAA-rated Oliver Kelton, who has changed his fund significantly over the past year. This includes the timeframe which saw Kelton move from Waverton to Odey Asset Management.

In April 2014 he held 22.80% of the fund in financials which was the biggest sector. In May 2015 he decreased this allocation to 13.48%.

Last year, he had holdings in three European banks. Intesa Sanpaolo was the third largest holding with 5.45%. The Italian bank is no longer in the top ten holdings.

Danske Bank AS dropped from the first largest holding to the fifth with a decrease of 0.77%. Lloyds banking group differed with a slight increase of 0.02% and remained the second largest holding.

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Michael Constantis
Michael Constantis
154/258 in Equity - Europe (Performance over 3 years) Average Total Return: 0.79%
David Robinson
David Robinson
18/258 in Equity - Europe (Performance over 3 years) Average Total Return: 12.73%
Olgerd Eichler
Olgerd Eichler
23/258 in Equity - Europe (Performance over 3 years) Average Total Return: 12.03%
Evy Bellet
Evy Bellet
22/258 in Equity - Europe (Performance over 3 years) Average Total Return: 12.03%
Oliver Kelton
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9/258 in Equity - Europe (Performance over 3 years) Average Total Return: 14.38%
Roderick Jack
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Marcel Jongen
Marcel Jongen