Nicolas Walewski's 5 Long Ideas From Sohn London Conference ~ market folly

Monday, November 26, 2012

Nicolas Walewski's 5 Long Ideas From Sohn London Conference

Continuing our series of notes from the Sohn London Investment Conference, next up is Nicolas Walewski of Alken Asset Management.  He pitched 5 long ideas at the event: Ryanair, Grifols, Continental Tires, Gemalto, and Amadeus.

Nicolas Walewski founded Alken Asset Management in 2005. Before that he was fund manager for the Oyster European Opportunities Fund.

Walewski started by talking about the macro picture in Europe which he said was  characterised by a lack of visibility. He argued that the European consumer will remain in  recession for some time and so it is hard to know where to find value in Europe?

His answer was to find businesses to invest in which have at least one or more of the  following 3 characteristics:

1. Low cost business models
2. Oligopolies
3. Innovators

He gave Ryanair as an example of a low cost business. Grifols and Continental Tyres as examples of oligopolies, and then Gemalto and Amadeus as innovators.  Tiger Management's Julian Robertson likes Ryanair according to his latest interview as well.

For the rest of the hedge fund presentations from this event, head to notes from Sohn London Investment Conference.

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