JOHCM's Beagles and Lowen: Financials still astonishing value

J O Hambro Capital Management's income duo James Lowen and Clive Beagles have said financial stocks still offer incredible value at current levels, amid growing interest in the sector.

The managers of the £2.1bn JOHCM UK Equity Income fund added a new position in Lloyds to the portfolio in August, following its sharp recovery, but they continue to see value across much of the financial sector. "Everyone fled this sector through the credit crisis and the valuations on which we were able to buy things were, and still are, astonishing value," Lowen said. "This, alongside re-ratings, are driving relative performance." In March 2009, as the fallout from the financial crisis continued, taxpayer-rescued Lloyds saw its shares drop as low as 20p. The bank has subsequently...