Mar. 9 - Loomis Sayles' Warren Koontz, manager of the Lipper-award winning Global Equity and Income Fund says that U.S. banks, especially Citigroup, have the potential to continue their rally from 2011 lows.
Pretty markets hit multiyear highs in the first quarter but half that rally taken all the steam out of stocks. Joining me is Warren -- vice president Loomis Sayles and co manager of the 2012. Lipper award winning global equity and income fund welcome good to talk to today Warren. Thanks for having me. Investors have been flustered by the volatile markets which have left them. Basically breaking even over the last decade yet you're on this up more than 9% and ten years which -- secret. It's really security selection driven well. The markets have been very volatile. It's been a lot of anxiety particularly in the last two years with the financial crisis. We've always view that volatility. In terms of where we can find opportunity. And be patient. Find good investing good investments if you will. In the volatility and over time. It pays off. How do rebalance the portfolio which you have more of a buy and hold strategy or do you make a move when he opportunities right. Well we certainly make a move when the opportunities -- and again that's from the individual's security level. But also given the volatility in the market we've been pretty good about. Trimming some of the areas that have held up very well or perhaps rallied and adding to the areas that perhaps got. Punished a little more than we think the fundamentals justified so it's really a combination of things that we do. To create. What we think is good portfolio. The market overall is going to do this year -- mean we're off to a pretty strong start so far in 2012. Well I think. The strong start in 2012. Is actually a function of the pessimism. It's certainly creeped into the market particularly in the third quarter of last year it just got too far. From really reality. In my mind and in our minds in this portfolio. And so therefore we're we're kind of getting a little bit of a make up balance if you will. But then also. From expectation standpoint it's things have been a little bit better and perhaps feared. The US economy's better the European situation is at least. Cornered. With the Euro crisis. At least being reasonably managed and so. When you look at some of the underlying fundamentals of companies there they're pretty good and so. We -- we would argue. That again if we're seen step by step improvement in the economic environment. That that could certainly happen with a step by step improvement. In -- worldwide stock.