Excerpt from FinancialAdvisor.com article featuring Horizon Investments’ Ron Saba (Senior Managing Director of Investment Management)

There’s a lot of proverbial financial blood in European streets—does that mean it’s time to buy?

The United Kingdom’s decision to leave the European Union shocked markets and left observers wondering what Europe’s future will be. Many asset managers were braced for the “Brexit” vote, yet they were still surprised by it since it countered the predictions of oddsmakers and pollsters and exit polls suggesting the U.K. would remain in the EU.

Ron Saba, the senior managing director of investment management at Horizon Investments, says that European financials are taking the biggest hit due to the Brexit, so he is looking closely at firms with cheap valuation and strong business models.

“We’re looking into the European financials,” he says. “That’s the ground zero, the epicenter of where this takes effect and where the most serious impacts could be. Barclays has been trading at 50 percent of book value, and maybe that’s justified. There are going to be some issues, but if you liquidate Barclays right now, people are still going to get as much money back as they paid for their shares. We believe that we’re not finished yet, and that there will be some opportunities because of the people just panicking.”

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