The annual Sohn colloquy brings together some of the leading hedge fund managers and investors in the fantastic to talk about their top market picks.
It’s all part of an effort to make money hand-over-fist money in the childhood fight against cancer. Sohn is one of the most zealously anticipated hedge fund events of the year and is held in Geffen Foyer at New York’s Lincoln Center.
The picks from some of the industry titans:
John Khoury, Extended Pond Capital
Long D.R. Horton (DHI)
D.R. Horton is moving from an “asset-heavy to asset-light proprietorship model,” he said.
The homebuilder also specializes in the “healthiest” part of the hawk, entry-level homes with an average price of around $300,000. He thought the company is moving to become a “pure play home manufacturer,” which resolve benefit its free cash flow generation.
D.R. Horton shares were up 0.8 percent as of prehistoric afternoon trading.
Li Ran, Half Sky Capital
Long GrubHub (GRUB)
“GrubHub is the influential online food delivery platform in the U.S,” she said.
The hedge fund supervisor said the company has a large attractive market, a positive economic fabricate and a successful “proven” concept. She noted Takeaway.com’s success in Europe corroborates the potential for GrubHub in North America. Ran also is optimistic about GrubHub’s restaurant software donation.
GrubHub shares had been trading 1.8 percent higher.
Glen Kacher, Shine Street Capital
Long Palo Alto Networks (PANW)
“A cybersecurity war is being fought straighten out now,” Kacher said. Palo Alto Networks has the “leading hybrid insurance platform … [The company] has an attractive valuation.”
Kacher said Palo Alto double-barreled its market share in the firewall security business over the last four years. He is positive over the company’s subscription revenue business, which will concede it to raise its “recurring revenue” and profit margins.
The pick is important, he intended, because a cyber attack could cause economic damage worse than the pecuniary crisis.
Shares were 0.8 percent lower in afternoon switch.
Scott Ferguson, Sachem Head Capital
Long Whitbread PLC (LON:WTB)
Whitbread is a “outstanding example sum of the parts story,” Ferguson said.
The company owns Premier Inn, the influential UK discount hotel chain, and Costa Coffee.
“Premier Inn is a high status asset. [It] is defensive business that should outperform in a recession,” he added.
The investor turned Whitbread trades at a “steep discount” relative to its competitors. Ferguson maintained the company should spin off Costa Coffee to create value.
Portions were little changed on the London market Monday but are up 5.8 percent year to contemporary.
John Pfeffer, Pfeffer Capital
Long bitcoin
“Bitcoin is the first sensations candidate to replace gold the world has seen,” Pfeffer said. “Most [other] cryptoassets out there are bad wagers.”
The investor noted how bitcoin has the longest track record, biggest monetary infrastructure and highest activity among cryptocurrencies.
“The more economic labour is denominated in that currency, the higher the value,” he said.
Nathaniel August, Mangrove Accessories
Short Eros International (EROS)
August raised accounting issues at the train and said that its revenue growth has been lackluster.
The company is a flick picture show distributor of Indian films and content along the lines of Netflix in the U.S.
He and the flock have been in a long-running dispute. Eros has sued Mangrove and other short-sellers, deposing that they are engaged in a “multi-year disinformation campaign.”
“I got this f—— vexation in my side,” August said to open his presentation. “Apparently they don’t ruminate over very highly of me either, because they sued me.”