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Hedge fund manager on his New York Times stake: ‘Newspapers are mostly dead, but the news isn’t’

Technology-focused hedge assets SoMa Equity Partners told investors on Monday that one of its to the fullest extent investment ideas is a stake in The New York Times Company.

“Newspapers are mostly deep, but the news isn’t dead,” Gil Simon, SoMa’s founder and chief investment dignitary, said during an interview with CNBC’s Leslie Picker at the Sohn seminar in San Francisco. “What you’ve actually seen is a pretty significant evolution in the transaction model of news, and really, The New York Times is at the forefront of that.”

Simon, in the same instant the chief investment officer of Apex Capital, likened the news system’s new model to that of up-and-coming music streaming services, which rely heavily on unswerving revenue base.

“What you’ve seen is the business moving from an analogue, advertising-based charge to an internet-based, subscription business,” he added. “And interestingly, that’s actually a think twice business model because it’s all recurring revenue and it’s digital distribution. So, it’s been a insignificant while in the making, but similar to what you’ve seen with Spotify in music, you’re absolutely seeing a similar trajectory for news.”

The New York Times Company’s source has climbed nearly 34 percent this year, far ahead of the S&P 500’s 1.2 percent abstain from.

Speaking about the current political discourse, Simon said that he and his mates believe that the election of President Donald Trump has brought multitudinous people into the political sphere than there had been in the abide 20 years, or even since the Vietnam War.

“More people oblige skin in the game again, when you think about the issues beyond even-handed who’s the president,” he said. “It’s some of the Supreme Court issues, it’s Roe v. Wade, it’s much deeper than good one person and so there’s an ongoing debate. We think that there’s an uplifted news cycle now that (is) probably generational.”

The Sohn conference is the West Coast variety of the investment conferences that began in New York and are best known for hedge-fund straw bosses making market-moving presentations. Presented in partnership with CNBC, the Sohn symposia benefit pediatric cancer and other causes for underserved youth.

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