CNBC Stock Blog
- 10 Dividend Picks For Your Portfolio: Chief Investors
- 4 Thanksgiving Week Buys For Your Portfolio: Market Pros
- There's a 'Great Chance' For a Double-Dip Recession: Strategist
- Retail Earnings and Sales to Improve in Q4: Analyst
- 4 Food Stocks to Stuff in Your Portfolio: Analyst
- S&P at 1050-1200 Trading Range Next Year: Strategist
- Art Cashin: Caution 'Growing' in Financials, Dividend Moves
- 3 Software Stock Picks from Lazard's Senior Analyst
- Investors Bet on a New Year's Rally For eBay
- Why You Should Play the Reflation Trade: Stock Picker
MOST SHARED
- The Executive Job Search
- Chinese Overcapacity is Worsening, EU Chamber Warns
- Salvation Army's Kettles Now Credit Card-Ready
- Topless Business Is Taking Off
- Where Do Pardoned Turkeys Go?
- US Mint to Suspend American Eagle Gold 1-Ounce Coins
- Oil Friday
- Trader Talk
- Activision Prepares to Double Dip on ‘Modern Warfare 2’
- 4 Thanksgiving Week Buys For Your Portfolio: Market Pros
- There's a 'Great Chance' For a Double-Dip Recession: Strategist
- Revenge of the Gangsta Nerds
- Will TCU See The "Flutie Effect?"
- Retail Earnings and Sales to Improve in Q4: Analyst
- Consumers Catching the Holiday Spirit
- It's Beginning To Look A Lot More Riskless
- Crescenzi: Claims Level Suggests End to Job Losses
- Hedge Funds Take Early Lead in Warren Buffett's 'Big Bet'
- Share Trading on London Stock Exchange Frozen
- Dubai Debt Delay Rattles Stock, Bond Markets
- Fannie Mae to Tighten Lending Standards: Report
- China Overcapacity Worsening, EU Chamber Warns
- Investing in Good Karma – and Making a Profit
- China Unveils Carbon Target Ahead of Copenhagen
- Wal-Mart Price Pressure Hurts China Workers: Report
- Black Friday to Avoid Red Ink; Greenback Gets the Blues
- Bankruptcies Jump, Hitting Highest Level in Four Years
RSS FEED
Text Size 
CNBC News Associate
Small cap financial stocks are on their way from "ugly, to OK, to good, to great," said David Ellison, CIO of FBR Equity Funds. He shared his sector and stock investment strategies. (See below for Ellison's 3 stock picks.)
“There’s been not quite [as much] bad news there,” Ellison told CNBC.
“A lot of the small caps have avoided the bad assets and now they’re benefiting from good lending spreads, decent loan volumes and they have enough capital.”
Ellison said it is “very easy” for investors to find the better names in small cap financials.
More Market Intelligence:
- Goldman Upgrades Bank Stocks
- 5 Stock Picks from a 5-Star Fund Manager
- Back to the Multi-Year Bear Market on Oct. 16
By using small caps, “you can avoid the names that have exposure to commercial real estate and certain markets that are in trouble,” he suggested. “You can avoid the construction banks that have lent a lot of money to construction companies around the company, primarily residential.”
Ellison’s Long-Term Financial Picks:
Astoria Financial [AF
Loading...
()
]
Washington Federal [WFSL
Loading...
()
]
TCF Financial [TCB
Loading...
()
]
CNBC Data Pages:
______________________________
Disclosure:
Ellison owns AF, WFSL and TCB indirectly through owning his funds.
______________________________
CNBC Slideshows:
______________________________
______________________________
Data is a real-time snapshot *Data is delayed at least 15 minutes