Shant sticks on blue chips

newton continental believes tide has turned from pursuit of yield to long-term holdings

Newton Continental European fund manager Raj Shant is maintaining his long-term position in blue-chip stocks, but is eschewing the chase for yield. His key positions include holdings in pharmaceuticals and beverage companies, which he believes will be insulated from an economic slowdown. Shant says he has been forced to rely on stock selection in recent years as mid and small- cap companies outperformed, but blue chips in general are now finding investor support. The fund had a good 2002, but suffered through 2003-04 as small caps outperformed. Stocks with market caps of less than e1bn m...