Stocks You Can Bank On

Raymond Stewart sees above-average gains in financial institutions

Raymond Stewart, president and chief investment officer of RASARA Strategies Inc., has an approach to investing not shared by traditional money managers. He likes hedging his bets in the banking sector.

“RASARA has taken advantage of knowing which bank stocks are a better investment over the longer term,” Stewart says. “For the past 10 years, to the end of the September 2006 quarter, RASARA has generated a 268% cumulative return compared to 110% for the S&P 500. RASARA limits its exposure to underperforming bank stocks by holding equity positions in banks that offer different services in different locations.” RASARA, an institutional investment management firm that invests on behalf of state, municipal, and corporate pension funds, is focused on investing in small- to mid-cap bank stocks that have a low price-to-earnings ratio. The company is based in Briarcliff Manor, New York.

ACROSS THE WEB