Thompson pays price for holding on to banks

Manager has suffered from bank overweight but believes many will report healthy bottom lines while part nationalised

New Star's underperforming income manager Toby Thompson has admitted he did not expect things to get this bad for banks. But the Higher Income manager said global recapitalisation efforts will prove fruitful. "I think the Government's plan takes the banks to a level where they will be well capitalised even if there is a big recession," he said. The manager took a similar view to colleague Stephen Whittaker going into the credit crunch, refusing to sell down troubled banks. His fund is now 88 out of 89 peers in UK Equity Income with one-year results, with a 48.4% loss to 21 October a...