Alex Roepers' 5 New Ideas: Value Investing Congress Presentation ~ market folly

Tuesday, September 17, 2013

Alex Roepers' 5 New Ideas: Value Investing Congress Presentation

We're posting up notes from the 2013 Value Investing Congress in New York.  Next up is Alex Roepers of Atlantic Investment Management and his presentation was called: "Insights from 25 Years of Constructive Shareholder Activism."  He also pitched 5 new ideas.

Alex Roepers' Value Investing Congress Presentation


19.2% compounded net of fees return over last 25 years.

Tips:  Define your universe. Stay in your area of competence. Build conviction by doing your homework. Wait for opportunity to arise, stalk stock until then. Don't be greedy: scale out as you reach your valuation. Don't use leverage. Concentrate funds on your highest conviction ideas. (They do best 6 or 7 ideas). Be honest and transparent with your investors.

Last year’s ideas:
Energizer (ENR): Sold with 29% profit
Rockwood (ROC): Still own up 39%
Clariant (CLN.VX): Still own, sold some, up 42%
FL Smidth (FLS.DC): Sold. Lost 5%
Joy Global (JOY): Sold. Only up 8%

Roepers' Five New Ideas

Baker Hughes (BHI): 43% upside. Third largest energy services. BJ services acquisition with zero margins. Activist to improve margins. $71 PT on 12x 2014 EBIT. 

Faurecia (EO.FP): Auto parts. Trading at 20c on the dollar. Deleveraging story. 50% owned by troubled Fiat. 41% upside to pt.

Itochu Techno Solutions (4739.JP): IT services.  Domestic company benefiting from Japanese financial firms recovery. 

Lanxess (LXS.GY) German polymer company. Rubber used in tires. Benefits from replacement cycle that has been delayed. 

Harman (HAR): Speakers. Mainly in cars. Jbl. Professional segment is arenas, concerts, etc. Infotainment 9 of top 15 car companies in the world. 

Be sure to check out the other presentations from the New York VIC here.

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