(Reuters) Bank stocks are back in vogue for hedge funds, which have shunned the industry over the past seven years due to a squeeze on banks’ profitability from low interest rates and because of their opaque balance sheets.
The election of U.S. President Donald Trump has already tempted some hedge funds back into bank stocks to raise their bets on deregulation and interest rate rises in the United States, which could help banks to earn higher returns on deposits.
