Fund managers catch the action, stay at the strikers’ end

LONDON: Fund managers have caught World Cup fever and are finding share-buying opportunities in companies set to benefit from the football fest in Germany. A good run for England could see many stocks in the leisure sector outperform, especially in the food and football areas.

Harry Nimmo, manager of the Standard Life UK Smaller Companies fund, predicts a busy summer.“We like Domino’s Pizzas for example,” he said. “They currently have 350 outlets in the UK and we think they can double that.”

He noted Domino’s is entirely focused on home delivery unlike Pizza Hut which combines a restaurant business. “With the World Cup upon us, I know for a fact that the chief executive is licking his lips at the prospects of a boom in business,”

Nimmo added.Nimmo said the company also had the benefit of an online booking option, something Pizza Hut has yet to develop, which accounts for 10% of its business.

Nimmo also thought Carluccio’s restaurant business was a good prospect. He bought into the stock when valuations were lower but he still thinks the stock has a strong story.

“You could say that Carluccio’s is expensive on a p/e basis but I think despite the price tag it is still good value. It is open from 8 am until late and has high table cover through the day, Nimmo said.

“The word from the management is that they could expand to around 100 sites in the near future and I think there is a real chance that they will take over from Pizza Express at the higher but affordable end of the chain restaurant market.

Giles Hargreaves, manager of the Marlborough Special Situations fund also likes stocks set to do well from the World Cup.“I regret not investing in Carluccio’s which is now fully priced, but other stocks like Domino’s Pizza have done well and there is a general consensus that consumption during the World Cup year will provide an added boost,” he said.