Asian-based asset management firm, Cornerstone Worldwide, believe that government measures to recapitalize major banks are stirring interest among long-term value investors.
Panic selling of stocks over the last two weeks has seen some banks lose large percentages of their market value.
Strategists at Cornerstone Worldwide are thought to be poised to acquire stock in banks once markets have digested any dilution effect of government-held stakes on sentiment.
A source close to Cornerstone Worldwide suggested that the UK’s plan to recapitalize three of its largest banks is likely to draw a line under the volatility displayed in their shares.
In a note to clients, Cornerstone Worldwide reportedly compared current values of some banks to their highs and speculated that they were worthy of consideration as long-term plays on the eventual recovery of the global economy.
