Euro-Area Fund Beating 99% of Peers Says Autos Are the New Banks

European auto stocks are primed for outperformance after years of lagging, according to a market-beating investor who’s selling long-time winners in the banking sector.

Divas Asset Management AG’s Eurozone Value fund has raised its autos holdings to about a quarter of the fund now, up from about 15% a year ago, according to manager Hansueli Jost. The 64-year-old said he’s been underweight on banks since September, for the first time in 17 years.