OMAM's Lilley: Why I am overweight European banks

Old Mutual Asset Managers' European equity manager Kevin Lilley is adding exposure to riskier sectors on the continent, increasing his overweight to banks in the view too much bad news is priced in to the market.

Lilley (pictured) who heads up the £48m Old Mutual European Equities fund, has been topping up exposure to European bank heavyweights BNP Paribas and Santander, which he sees as offering compelling value. "I am overweight the banking sector, the reason being that it is offering a strong value case, and I believe now is the time to have some risk on trades in the portfolio," said Lilley. "Eurozone banks are trading on a price to book level that coincides with that seen after the Lehman crisis." The manager has been topping up his banking positions since the end of May, cutting back ...