Telecommunications stocks are still making the right connections for Sandra Yeager, despite their heavy run-up last year.
The Alliance Capital Management's senior vice-president said: 'We are growth managers and so we try to invest in growth stocks and where we find the most growth now should be no surprise to anybody - telecommunications.' Working from the head office in New York, Ms Yeager is part of the US fund management giant's global equity team which assembles its portfolios from 'Favoured 50' stocks.
Of the present 50, seven are telecoms stocks, with German takeover target Mannesmann in the No 1 slot and its British bidder Vodafone AirTouch at No 40.
'It is an interesting battle there,' said Ms Yeager. 'We are listening to both sides. Either way, a single company or a combination, those companies will be winners. The penetration [growth] in mobile phones in Europe is surprising everybody.' In Asia, South Korea's SK Telecom has recovered from corporate governance worries and remains on Alliance's buy list, as does SAR-listed China Telecom.
'[It] has terrific potential for growth given that there is maybe 1 per cent penetration [of mobile phones] in China,' said Ms Yeager.
Another pick is NTT DoCoMo, which last year achieved a world-first by offering continuous connections to the Internet via a mobile handset.
