The opportunity in the financial sector continues to be in distressed assets, said Anton Schutz, portfolio manager at Mendon Capital.
“I’ve been buying companies that buy some of the distressed assets,” Schutz told CNBC.
Additionally, Schutz named some bank stocks that he likes such as First Horizon and People’s Bank.
“Some of the banks that have come out of this, like First Horizon, that were very early in raising capital, very early in building up their reserve ratios, are going to be among the first to come out of it,” he said.
In the meantime, Schutz said he would be willing to buy more shares of Citigroup on a pullback.
“[Citigroup's] certainly been on a straight line like many of these stocks have been lately, but I think they’ve done a lot of the right things,” he said.
“It will be a while before they earn some money, but they’ve shrunk the balance sheet, they’ve sold businesses, they’ve reduced risk and built capital.”
Schutz and his family own Citigroup, People’s Bank and First Horizon through his fund.
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