TMT stocks find favour with SocGen’s Sergeant

SocGen UK Special Opportunities joint fund manager Hugh Sergeant is favouring media, telecoms and software stocks. Sergeant, who has skewed the portfolio to these areas for at least the past six months, says they did well for the fund in 2003. But the fund manager, who holds 40-80 stocks in his portfolio, with a focus on small to mid-cap companies, says it is still too early to sell: “Earnings momentum is only just starting to come through.” Sergeant has made a number of changes to the portfolio. One software stock he has bought in the past few months is Parity Group. He says: “It has quite new management, and they have restructured and improved the company.” In media, he likes radio companies and over the past three months he has bought GWR Group and Capital Radio. He says: “We see the first signs of recovery there in terms of radio advertising. They are geared businesses, so profits will go through the roof.” Sergeant, who runs the fund with Harinder Sandhu, also likes telecom stock Pipex Communications. He says: “It is well run by a very successful entrepreneur.”