UBS Warburg analysts scoop the City 'Oscars' for the second year running

Bulge bracket banks dominate Thomson Extel awards but Merrill performs poorly again

UBS Warburg again dominated the City's version of the Oscars yesterday when it won the best European broker category in the Thomson Extel Survey for the second successive year. The Swiss bank also picked up the awards for best equity sales brokerage and best firm for equity trading and execution.

Most of the categories featured the same bulge bracket bank names in the top three slots as UBS Warburg, Schroder Salomon Smith Barney, Deutsche Bank and Credit Suisse First Boston flexed their muscles. Merrill Lynch, still reeling from the US share ramping scandal, had another poor showing. It failed to be nominated for any of the leading 10 awards while Goldman Sachs only received one nomination.

One rueful analyst from a smaller bank who left the ceremony empty handed commented: "It just shows the dominance of the big firms."

Another analyst appeared relieved just be allowed out of the office. "I spend 12 to 14 hours at my desk. I feel like I've been set free."

There was a danger that the ceremony, held at the City of London's Guildhall, would be overshadowed by the Ireland v Saudi Arabia World Cup match which was going on at the same time. Michael Grade, the former Channel 4 boss who was presenting the awards, appeared mindful of the conflict during a relaxed performance as the main compère. "We are grateful for you all taking time off from watching the World Cup to be here," he said. "Before going any further I can tell you it is Saudi Arabia 0 Ireland 1, so far."

The news drew one of the biggest cheers of the event. Indeed it became the theme of the lunch as other presenters regularly updated the 400 guests with scores from both the Ireland game and the Germany v Cameroon fixture.

Mr Grade took the opportunity to poke fun at how even the best brains in the City can get it wrong. He dug up a survey from the previous year's event which had asked the guests whether the FTSE 100 index of leading shares would rise or fall during the year: 74 per cent messed up, saying it would rise.

There were more surveys again this year with votes being cast by push-button remote control handsets on each of the 42 tables. Mr Grade again asked where the FTSE 100 would end the year. The most popular vote (48 per cent) was for between 5,000 and 5,500.

There was also a survey on the number of IPOs (stock market floats) in the second half of this year. "That's a full listing, anyone can get away on Aim," joked Mr Grade who is chairman of the Aim-listed Hemscott business investment group. Most votes were for the 11 to 20 category. Other questions included who was the most likely successor to Sir Edward George as the next governor of the Bank of England (Mervyn King was chosen ahead of DeAnne Julius).

Though there was a good deal of levity over the marinated fillet of red mullet and corn fed chicken "laced with truffles" there was no escaping what was at stake. The Thomson Extel awards are a key event in the City calendar. A win, or even a nomination can have an enormous impact on an analyst's salary and bonus potential. Indeed, some analysts curry favour with fund managers in the run-up to the awards to bolster their chances.

The survey is largely conducted online these days and votes were canvassed this year from 3,500 people at 860 firms in 42 countries. Fund managers' votes are weighted according to the funds under management at the institution they represent. There is a separate award for best broking firm as voted by company finance directors and investor relations departments (Deutsche Bank beat UBS Warburg to the top spot).

The top individual award for best equity analyst went to Harald Hendrikse, 33, an aerospace analyst at Credit Suisse Boston. He published two research notes after 11 September urging investors not to panic. "A lot of people panicked but we tried to analyse the situation," he said. Commerzbank put "buy" recommendations on Rolls-Royce and EADS, both of which performed strongly. He dismissed suggestions his bonus would now soar on the back of the award. "This is a terrible year to win it. I should have won it three years ago."

The rising star award went to James Eden of Commerzbank. Mr Eden is aged 26 and covers the banking sector, with particular emphasis on UK banks. He was unable to collect his award yesterday as he was in America on business. Speaking from San Antonio, he said: "I'm obviously very pleased but the credit should go to the whole team. I'm a UK banking specialist and I couldn't do that without the help of the rest of the team." Asked what research he had been pleased with during the year he pointed to a March sector note entitled Wonderful results, wonderfully disguised. This was a positive call on UK banks upgrading the sector.

Other snappily titled notes from the Douglas Adams fan included The Fund Managers Guide to the Galaxy in January and Life the Universe and Everything in March.

Asked about his bonus prospects he said. "I don't really want to make any comment on that. I couldn't work these hours if I didn't love what I do."

The economics graduate of Clare College, Cambridge, who joined Commerzbank in September last year after spells at Deutsche Bank and NatWest said he planned to celebrate "with a glass of champagne with my wife".

Caroline Randall of JP Morgan, who won last year's rising star, was placed third. The utilities analyst had been so surprised by her win last year that she had turned up at the event wearing casual clothes.

Thomson Extel said there were no hard and fast criteria for the rising star category though the award was intended for individuals who had not worked in the City for long or were new to their sector.

The award of the best company investor relations went to Diageo, which pipped last year's winner BP into second place with Nokia in third. There had been heavy betting on Marks & Spencer at the Cantor Sport desk in the reception area before the lunch. Betting got so heavy that M&S's odds were cut from 6-1 to 4-1 in a matter of minutes. However, the recovering retailer failed to make the first 25 in the end.

The award for best fund management group went to Fidelity Investment Services for the second year running. Capital Group came second, the same as last year, Schroder Investment Management third.

The sector trends showed a continued strong performance from old economy areas after the bursting of the dot.com bubble. The top three sector team awards went to SSSB's utilities team, followed by SSSB's banks team and the banking team of UBS Warburg.

TOP ANALYST HENDRIKSE FLIES HIGH

With a healthy tan and a smile as wide as London's Guildhall itself, Harald Hendrikse was the City's most envied man yesterday after he scooped the individual equity analyst award.

The 33-year-old Dutchman covers aerospace for Credit Suisse First Boston and the award was a tribute to some tough calls in one of the most difficult sectors of the past year.

"Post 11 September a lot of people panicked. We tried to analyse the situation. And we put 'buy' recommendations on Rolls-Royce and EADS [the defence group]," he said.

Mr Hendrikse and his team issued two notes in the second half of September, entitled Don't Sell into Panic 1 and Don't sell into Panic 2.

Mr Hendrikse is an accountant who joined CSFB three years ago after three years at Schroders and three years at Merrill Lynch.

He has strong views on the current trend towards vilifying investment analysts. "It upsets me that we're being blamed for all this stuff. It is easy to vilify people like Henry Blodget but you have to think about what was happening at the time. When Marconi was 800p was it a buy or a sell? If you'd said 'sell' and it went to 1,200p you would probably have been sacked."

He said the culture of management over-optimism was also to blame. "Of course you are influenced by the management and their views. If you put a company on 'hold' or 'sell' then the management don't talk to you."