Telecoms to recover from poor sector performance

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Thornhill Capital Trust manager Russell Wallis is expecting a revival in the telecoms sector on a si...

Thornhill Capital Trust manager Russell Wallis is expecting a revival in the telecoms sector on a six month view and his FTSE 100 portfolio's largest overweight is in the sector. Telecoms have suffered from an earnings downgrade largely due to the high costs of the third generation licences. The debt levels of these stocks were enormous as a result of the licence purchases and this will inevitably eat into profits, Wallis said. Even so he has a 20.6% exposure to the sector with Vodafone making up 9.6% of his portfolio, British Telecom 7.9% and Cable & Wireless 3.1%. He has gone overweigh...

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