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Industry Sectors: Telecommunications Services

Graeme Pearson, 35, and his five associates at Lehman Brothers held the crown each year from 2002 through 2008.

Graeme Pearson & team Nomura

second teamHannes Wittig & team J.P. Morgan

third teamJustin Funnell & team Credit Suisse

Graeme Pearson, 35, and his five associates at Lehman Brothers held the crown each year from 2002 through 2008. The team tumbled to runner-­up last year in the midst of their move to Nomura, but this year they are back on top, thanks in part to their “world-class fundamental work,” as one port­folio man­ager puts it. One example: In September the team told clients that the ADRs of Bonn-­based Deutsche Telekom, then at $13.49, were “too cheap to ignore.” The receipts had risen to $14.70 by December 31, a 9 percent gain that edged past the sector by 1.1 percentage points. Down one notch to No. 2 is J.P. Morgan’s seven-­analyst squad under Hannes Wittig, whose “handling of BT Group was a classic combo of timing and follow-­through,” recalls one impressed investor. The researchers upgraded the British telecommunications services provider to overweight in August as the outlook on its business improved; in November, after the shares had popped 10 percent and beat the sector by 1.7 points, they urged clients to take profits. After that, the stock slid 8.5 percent, through December. The ­Credit ­Suisse crew spent the past three years in the runner-­up position; this year they advance to No. 3. Justin Funnell, sole leader following Jan-­Willem Brand’s move to specialist sales, and his four teammates upgraded Belgian broadband-­telephony provider Telenet Group Holding to buy last February, at €12.83, on strong growth prospects. The stock had surged 55.3 percent, to €19.93, by the end of the year.The analysts provide “broader coverage than usual, with a good mix of established large caps and niche emerging-­markets opportunities,” says one fan.

To go back to the index page, click on the Best European Analysts of the Year: 2010 All-Europe Research Team.

To read the article, click on: Reversal of Fortunes: The 2010 All-Europe Research Team

Click here to access the complete rankings of the 2010 All-Europe Research Team

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