Odey: Why I am buying banks

Crispin Odey, the founder of Odey Asset Management, is buying UK banks in the view increased capital requirements will boost profit margins.

Speaking at a Morningstar Investment Conference today, Odey said Barclays is now the third largest holding in his £281m CF Odey Opus fund. The manager believes the measures banks have taken to hold additional capital will prove supportive of profit growth. "I would buy banks now as margins have expanded enormously and the real point is, they are recovering," he said. Meanwhile Odey said commodity prices will remain at elevated levels in the near term because of support from emerging markets. Despite the dramatic rise in the prices of oil, gold and other commodities seen in the l...