Harris Associates, a U.S. investment company, has made headlines increasing its stake in Credit Suisse at a time when the Swiss bank struggled to convince markets about its new strategy. Harris also has several other Swiss investments, begging the question for the reason behind this exposure.

While most investors are shunning banking titles, Harris Associates is building stakes in companies such as Credit Suisse (CS) – and with its investment of some 10 percent in Switzerland's No. 2, it caught the headlines.

The investor, which describes itself as long-term, has also just increased its stake in EFG International, to 5.27 percent from 3.14 percent, according to a stock market announcement.

Third-Biggest Stake in EFG

Latsis, the Greek-Swiss owner family, has 44 percent, BTG Pactual 30 percent following the acquisition of BSI, and Harris is now the third-biggest stakeholder.

Harris exceeded the 3-percent-threshold in September 2015, when the share was worth 11 francs. Having reach a low of 3.18, the stock is now worth about 4.81 Swiss francs.

With the increase of its stake, Harris shows it is convinced about the business model of EFG, which may surprise some observers given the difficulties the bank is fighting with in conjunction with the takeover of BSI – 1MDB and the corruption scandal in Asia suffice as cues.

Value Investor

The U.S. investment company was founded in 1976 and defines itself as a value investor, trying to unearth hidden substance of what it would say are undervalued stocks. And many of those seem to have their headquarters in Switzerland, judging from the number of investments in the country.

David Herro is the chief investment officer (CIO) of Harris and is responsible for the asset allocation. He sees a lot of potential at Swiss banks, as he told Swiss business paper «Finanz und Wirtschaft» (behind paywall) recently.

The consolidation on the Swiss financial market will continue, Herro believes, and EFG International will remain a buyer – and thus winner – along the process.

Non-Financial Investments

Harris also has a stake in Julius Baer, holding 5.33 percent, according to a stock exchange statement of September 2013.

Harris Associates, which is owned by Natixis, had client assets worth some $103 billion by the end of June. The company employs 200 people, 39 of which are investment experts.

The company also has stakes in Kuehne + Nagel, LafargeHolcim, Bucher Industries, Adecco, Kaba, Givaudan, Bobst and Burckhardt Compression, Swiss companies outside the finance industry.