Top fund manager David Herro says many European banks are looking like good investments right now, and that they are “well positioned to perform better” than US banks.

Herro tells CNBC that most of the major European banks have strong capital positions, and he adds that efforts to increase liquidity in Europe should increase lending at the same time that loan losses are declining. All of that should mean better operating conditions and better earnings going forward, he says. In addition, many European banks are trading at extremely attractive prices. “This is a really good time to be increasing exposure to select European banks,” he says. By select, he says he means those with good operating models and good operating efficiencies and good capital positions.