EU Banks: more room for upside?

Hedge fund net exposures in European Banks are at around +1.5SD above 3.5Y averages. Long but can get longer....Relative valuation would support this. Despite their strong run, EU banks still look very undervalued vs history. SX7E currently trades at a relative PBV discount of -66% vs the wider market, 18ppt below the 20Y average.