Livewire recently featured our very own Armina Rosenberg in their latest Outlook Series. In this piece, she joins nine other fund managers to explore the industries poised for breakout performance in 2026.
Our portfolio management team identified European banks as a standout sector for 2026. After a challenging decade from 2010 to 2021 focused on balance sheet restructuring following the GFC, European banks are now entering a period of sustained growth with strengthened capital positions and robust Tier One Capital.
We highlighted UniCredit as our top pick to capture this opportunity. As Armina Rosenberg noted:
"UniCredit has an exceptional cost-to-income ratio of 38%. It's got strong growth coming through. You've seen their CEO talk about the credit boom coming again in Europe. And I think that you'll see that play out in 2026."
This analysis reflects our focus on identifying undervalued sectors experiencing fundamental transformations. European banks represent the type of contrarian opportunity that emerges when industries complete necessary restructuring and position themselves for growth after extended periods of underperformance.
To watch, read or listen to this piece, click the link below.