How Much Hope For Credit Suisse?

Credit Suisse offices in Zurich

Despite a massive slide in Credit Suisse’s shares, at least one major investor has come out backing the new strategy of Switzerland’s second-largest bank. 

U.S.-based Harris Associates Investment Trust has raised its stake in Credit Suisse, according to a stock exchange disclosure reported by «Finanz und Wirtschaft». The fund manager now owns 5.08 percent of Credit Suisse through three «Oakmark»-branded funds, from 4.21 percent previously.

Based in Chicago, Harris is majority-owned by Natixis and has backed Credit Suisse’s strategy several times in the past, as reported.

«Painful» Cost-Cutting

David Herro 500

David Herro, Harris’ international investment chief (pictured above), runs counter to the prevailing investor view on Credit Suisse shares, and he has in the past gone on record in favor of Credit Suisse's cost-cutting and ts renewed focus on Asia.

The spending cuts are «painful» for those affected, but necessary, according to Herro. He also favors Credit Suisse investing its capital in areas which promise sustainable growth, like wealth management in Asia.

Portfolio Shifts

Harris’ optimism goes even further: the fund house owns a total of at least 8.5 percent of Credit Suisse, when tallying together other investment vehicles, according to Bloomberg.

Credit Suisse shares now trade under 12 Swiss francs, a level last seen in the early 1990s. According to sources, some Swiss clients have begun dismantling high cash piles and moving into bonds in order to fall below the 100,000 franc threshold of cash guaranteed by the Swiss government should Credit Suisse run into more serious trouble.



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