Danoff has been unenthusiastic about what he describes as capital intensive telecom and utility stocks.
"We continued to essentially avoid the utilities sector due to its persistent capital-intensive business models, regulatory pressure and historically slow growth," his commentary letter said. "At period end, our view was that utilities stocks traded at high price-to-earnings premiums relative to their history. Similarly, we largely avoided telecom companies, as they are capital intensive, regulated and commodity-like."
This article was provided by Reuters.