Hedge star Jabre sees bargains in bombed-out stocks

LONDON (Reuters) - Many stocks in heavily discounted sectors such as banks and industrials still look cheap, says hedge fund manager Philippe Jabre, although he has trimmed his large weighting in equities after the recent rally. The former GLG (GLG.N) manager, whose Geneva-based Jabre Capital Partners runs around $3 billion in assets, said stocks whose share prices were battered last year can benefit from easier access to credit, less competition and improving margins.

"There's money to be made in sectors that were the weakest," he said in an interview this week.

"You have a lot of stocks that are cheap in this market, hit by deleveraging of investment funds.

"Industrials are very bombed out. Six months ago everyone as scared about bankruptcy. Ford (F.N) was $2, now it's $6, but why should it stop at $6 if it's making money and competitors are bankrupt?"