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Industry Sectors: Leisure & Hotels

Jamie Rollo’s Morgan Stanley quintet defends the title, for a sixth consecutive win.

Jamie Rollo & team Morgan Stanley

second teamIan Rennardson & team BofA Merrill Lynch

third teamSimon Champion & team Deutsche

Jamie Rollo’s Morgan Stanley quintet defends the title, for a sixth consecutive win. ­Money man­agers appreciate the team’s “frequent comments, rich in useful details” and “exceptional call on Compass Group.” Rollo, 37, and his associates upgraded the U.K.-­based global food ser­vices operator to overweight in April, at 311p, on improving margins. The stock zoomed to 455.80p through December, a 46.6 percent gain that was ­nearly double the sector’s 23.9 percent advance.

The three-­member BofA team led by Ian Rennardson jumps from runner-­up to second place. Investors laud the researchers for “lively, honest arguments” and “refreshing contrarian views.” In May the team advised clients to sell Ladbrokes, deeming the U.K.-­based gaming company’s shares overvalued at 207.50p. The stock had tumbled 37.9 percent, to 128.90p, by mid-­November, prompting the analysts to reverse course and issue a valuation-­driven upgrade to buy. The share price had climbed back 6.7 percent, to 137.50p, by December 31.

After three years in second place, the seven-­analyst Deutsche team captained by Simon Champion falls to third, but the analysts remain “consistently strong performers,” as one buy-­sider puts it. One example: The team urged investors to buy Whitbread in late December 2008, calling shares of the U.K.-­based hospitality com­pany a bargain at a split-­adjusted 884.46p. The stock had shot to 1,411p by the end of 2009, a gain of 59.5 percent that outperformed the sector by a stunning 46.6 percentage points.

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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