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Trader: Buy these bank stocks on higher rates

Traders work on the floor of the New York Stock Exchange.
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Traders work on the floor of the New York Stock Exchange.

The Fed's decision Wednesday to increase interest rates for the first time since June 2006 could be setting up a winning trade for a group of stocks.

Based on a quantitative model that takes into account various economic factors, Jeff Kilburg believes there are opportunities within the financial space.

Even though many investors bought into the entire financial sector on expectations rate hikes will help their bottom line, that trade has not played out since the Fed's increase.

But as interest rates trend higher, this bet will pay off if you buy the right kind of bank stocks, said Kilburg, founder and CEO of KKM Financial.

Watch the video below to find out how the money manager is playing this trend.

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