As European equity funds continue to attract substantial investor flows, it is worth taking a fresh look at some of the continent's banks with worldwide operations, according to Man Group's Pierre Lagrange.
"We've got a strong interest in the global European banks as it has been very difficult to invest in them for a very long time. We feel that even though there are still some issues with some of their business models, from a valuation point of view we can see a re-rating," observed Lagrange, speaking to CNBC on Tuesday.
"Especially if we start thinking we are in a less deflationary environment in Europe - and from an interest rate point of view," added the Belgian fund manager who co-founded GLG Partners in 1995 and has stayed with the firm since its $1.6 billion acquisition by U.K. asset manager Man Group in 2010.
European banks, as represented by the Euro Stoxx banking index have had a tumultuous couple of years after assaults from a variety of quarters, such as rock bottom interest rates, crippling litigation charges and a tightening of global regulatory screws. While the past year has seen the index rebound by over a third, it still remains 13 percent lower than in May 2015.