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Blue-Chip Stocks Poised for Rebound; May Outpace Other British Equities.

Knight Ridder/Tribune Business News, November, 2001

By Jenne Mannion, Sunday Business, London Knight Ridder/Tribune Business News

Nov. 11--If last week's aggressive half-point interest rate cut achieves the central bank's goal of averting a recession and growth resumes, blue-chip funds will be positioned to outperform other UK equity funds for the first time in years.

For the past three years, blue-chip funds have been handicapped by their mandate of holding FTSE 100 stocks over a period when small and mid-cap stocks have mostly outperformed, but the tables will turn if the market recovers as investors start to chase liquidity.

John Husselbee, fund-of- funds manager at Henderson Global Investors, says large market value stocks will lead any rally amid signs of a world recovery. However, it...

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