Shah bullish on 'multi-year' bank story

Fidelity Special Situations fund manager Sanjeev Shah remains bullish on the long term prospects for banks, believing the sector is a strong multi-year story for investors.

Shah, who invested heavily in a wide range of financial stocks during the latter part of 2008, recently topped up holdings in names such as RBS and Lloyds during weakness for banks in Q4 last year. "I look at the banks with a three-to-four year view," Shah says. "The first phase, during 2009, was a re-rating when investors realised the troubled banks would not need to be nationalised, and we were just going to go through a tough recession not depression. "The next step is a drawn-out process of the longer-term earnings potential of these franchises coming through. "There are a lot ...