European banks released their stress test results Friday, and Ariel Investments, led by John Rogers (Trades, Portfolio), worries about their safety.
"There's too much risk to be investing in these names," he said. "They just don't represent a good risk-reward trade-off. Clearly the European bank authorities don't want to send a signal that there are real problems in the system. There are real problems in the system, particularly in Italy."
According to Bobrinskoy, the stocks may appear inexpensive but do not represent good value.
