Bruce Berkowitz, one of Morningstar’s Fund Managers of the Decade for the 2000s, is sticking by his conviction that AIG and other financial stocks are undervalued and will make big gains.

“Our inclination remains to run from the popular and embrace the hated where prices tend to reflect such mistrust,” Berkowitz wrote in a report to investors, according to Bloomberg. “Often, we are ahead of the crowd, too early, and appear wrong for a time.”

In addition to AIG, Berkowitz says he still thinks banks like Bank of America and Citigroup will prove wary investors wrong. “Financials with enormous cash flows and diminishing restructuring expenses for the illogical extremes of 2006/2007” are at a tipping point, he says. “Their pre-provision, pretax earnings power is compelling.”

As for AIG, Berkowitz says the stock is being hurt not because of fundamentals, but because the U.S. Treasury is trying to sell its 77% stake in the company. “When a recovering icon trades at half of our understanding of intrinsic value for a reason that has nothing to do with its prospects, we swing big,” he said.