CNBC Stock Blog
- Greek Exit Could Trigger 50% Fall in Euro Stocks: Analyst
- Big Stock Upside for Hudson City Deal: Analyst
- 5 High-Yield Stocks Ready to Boost Dividends
- Option Bulls Take Another Shot on Idenix
- Top 20 European Stocks for Crisis Time: Strategist
- Hewlett-Packard Faces a ‘Dogfight’ for Talent: Analyst
- DuckDuckGo Cooks Google’s Goose: Analyst
- General Electric’s $4.5 Billion Dividend Slated for Buybacks
ABOUT THE CNBC STOCK BLOG
ART CASHIN
RSS FEED
Financial Stock Picks from a Chief Investor
Text Size 
CNBC.com Writer
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
