London — Money manager Andrew Neville barely blinks when asked to pick his portfolio’s crown jewel. Sunny Optical Technology Group has returned about 7,000% to his team at Allianz Global Investors. They’ll soon have to part with the shares, which they’ve owned since 2010, because the Chinese lens maker with a $17bn market capitalisation, has far outgrown its small-cap focus, he says. The next big winner in his view? Deutsche Pfandbriefbank, the German property and public-sector lender that was once part of the failed Hypo Real Estate Holding, bailed out in 2008. He’s betting it will benefit from increasing demand for credit just as European bank stocks begin to shed the gloom that depressed valuations in the aftermath of the financial crisis. A UK legal dispute hanging over Deutsche Pfandbriefbank’s stock isn’t a deterrent, he says. "Some people won’t touch it because it’s got binary uncertainty,’’ said Neville, who runs Allianz GI’s $2.1bn global small-cap funds from London. "We th...
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