< The 2014 All-Europe Research Team

Andrew Chu, Thomas Sykes & team
Deutsche Bank
First-place appearances: 0

Total appearances: 12

Team debut: 1999

Repeating in second place is Deutsche Bank’s squad co-captained by Andrew Chu and Thomas Sykes. The five team members are “great collaborators,” one money manager avers. “No matter who you speak to, you’ll get a good, strong and insightful answer.” The analysts cover 24 stocks from their base in London. “We think that the U.S. economy is in a much later cycle than many expect and that the rate cycle will have to move upward more quickly,” says Sykes. “The macro environment in Europe will be stronger than in 2013, and 2014 will be a stock pickers’ market.” Deutsche’s team prefers companies that are cash generative, maintain good pricing power and operate in industry segments that have high barriers to entry. This year the issues of greatest concern to companies in this sector, the researchers contend, will include the impact of tapering on growth and foreign exchange, U.K. government outsourcing trends and the impact of U.S. health care reforms. One preferred name from last year that still earns the their favor is Germany’s Deutsche Post, which provides shipping, freight delivery and logistics services to businesses and the public. Its shares rocketed 59.6 percent last year, to €26.50, drubbing the sector by 44.4 percentage points. “We still think that there is continued earnings momentum, rerating potential and surplus cash of up to €4 per share that can be handed back to shareholders over the next two years,” reports Sykes.