Friday, August 30, 2013

Stock Pick Performance From Value Investing Congress Speakers Presenting at September's Event

The Value Investing Congress is only a few weeks away and will take place on September 16th & 17th in New York.  MarketFolly readers can receive discounted admission by clicking here and using code: N13MF7  This code expires tonight so be sure to take advantage.

Performance of Last Year's Picks From Speakers

We thought we'd check in on the performance of the stock picks from last year's Value Investing Congress.  These picks are from speakers who presented last year that will also be presenting again this year.

Here's the performance breakdown from October 3rd, 2012 until August 29th, 2013:

- 17 out of 21 picks outperformed the S&P 500

- Average performance of picks: +49%

- Performance of S&P 500 over same time frame: +13.3%

Jeff Ubben's Picks
Long Valeant Pharmaceuticals (VRX) +77.1%
Long Moody's (MCO): +44.2%
Long CBRE (CBG): +14.3%
Long Motorola Solutions (MSI): +11.7%

He also mentioned these names: Halliburton (HAL): +42.5%, Adobe (ADBE) +41%, & C.R. Bard (BCR): +9.8%

Mick McGuire's Picks
Long Gencorp (GY): +50.5% 
Long Brookfield Residential Properties (BRP): +39.6%

Long Alexander & Baldwin (ALEX): +28.7%

Alex Roepers' Picks
Long Rockwood Holdings (ROC): +34.9%
Long Energizer (ENR): +34%
Long Clariant (CLN VX): +33.9%
Long FLSmidth (FLS DC): -5.7%
Long Joy Global (JOY): -45.1%

Whitney Tilson's Picks
Long Netflix (NFLX): +409.8%
Long Howard Hughes (HHC): +46%
Long Berkshire Hathaway (BRK.A): +26.1%

Guy Gottfried's Picks
Long Canam Group (TSE:CAM): +81.2%
Long ClubLink Enterprises (TSE:CLK): +19.1%

Bob Robotti's Picks
Long Calfrac Well Services (TSE:CFW): +34.8%

As you can see, these managers' picks performed quite well on average.  And don't forget: each one of them will be presenting their new picks at this year's event in a few weeks along with plenty of other new speakers (full list of speakers here).

Hear Ubben, McGuire, Roepers & More Pitch Their Latest Ideas

Find out what stock picks these hedge fund managers will pitch at this year's Value Investing Congress in September.  Market Folly readers can save $800 off admission by registering here and using code: N13MF7  Remember, the code expires tonight!

Sequoia Fund's Investor Day Transcript: Valeant Pharmaceuticals, Google, Sirona Dental Systems & More

Ruane Cunniff Goldfarb's Sequoia Fund had its investor day earlier this summer and they finally released a transcript of the event. 

In it, they talk about their big position in Valeant Pharmaceuticals (VRX) numerous times.  Just keep in mind that since their investor day, Valeant has acquired Bausch & Lomb. 

Sequoia Fund managers also talked about their investment thesis on World Fuel Services (INT), Ritchie Brothers (RBA), Sirona Dental Systems (SIRO), Google (GOOG), Rolls-Royce, Advance Auto Parts (AAP), O'Reilly (ORLY) and many other stocks.

Additionally, the portfolio managers talked about their investment process and how they value companies.

Embedded below is Sequoia Fund's annual investor day transcript.  It's an in-depth read that we highly recommend:

You can download a .pdf copy here.

Mark Yusko & Morgan Creek Capital's Q2 Review and Outlook

Today we present Mark Yusko's second quarter review and outlook from Morgan Creek Capital Management.

Embedded below is the Q2 review:

For more on this manager, we've also previously highlighted Mark Yusko's presentation on Japan from The Grant's Conference.

Bill Ackman Dumps J.C. Penney Stake

If you missed it, Bill Ackman's hedge fund Pershing Square Capital Management has dumped its stake in retailer J.C. Penney (JCP) according to an amended 13D filed with the SEC. 

Ackman offloaded the shares to Citigroup, who in turn will sell them to other investors.  Dow Jones reported that Citi offered the shares between $12.50 and $12.90.

Pershing had previously owned 18% of the company and it looks like they'll lose ~$400 million on the trade.  To walk through Ackman's thinking on his JCP decision, you can check out Pershing Square's Q2 letter which gave hints that he was leaning toward selling.

Some investors have called Ackman's sale a 'capitulation' of sorts and a potential contrarian signal for the stock to head higher, but then you also have to consider that it would still be a bet on the company's fundamentals.

Ackman was also recently interviewed by Charlie Rose.

Tuesday, August 27, 2013

Lone Pine Capital Adds to B/E Aerospace, Dollar General & DSW

Steve Mandel's hedge fund firm Lone Pine Capital has filed 3 separate 13G's with the SEC.  Here's the breakdown:

B/E Aerospace (BEAV)

First, Lone Pine has disclosed a 5% ownership stake in B/E Aerospace (BEAV) with 5,285,850 shares.  The 13G filed with the SEC was required due to portfolio activity on August 16th and represents a 22% increase in their position size since the end of Q2.

BEAV was analyzed in our premium Hedge Fund Wisdom newsletter last November and is up over 58% since then. Lone Pine originally started their BEAV position back in the first quarter of 2012.

Per Google Finance, B/E Aerospace is "a manufacturer of cabin interior products for commercial aircraft and business jets and distributor of aerospace fasteners and consumables. The Company sells its products directly to the airlines and aerospace manufacturers. It also designs, engineers and manufactures customized fully integrated thermal and power management solutions for participants in the defense industry, aerospace original equipment manufacturers (OEMs) and the airlines. In addition, it provides aircraft cabin interior reconfiguration, program management and certification services. The Company operates in three segments: commercial aircraft, consumables management and business jet."

Dollar General (DG)

Second, Mandel's hedge fund also revealed a 5.4% ownership stake in Dollar General (DG) with 17,684,604 shares.  The 13G was filed with the SEC due to trading activity on August 14th.  Their position size has increased almost 30% since the end of Q2.

Per Google Finance, Dollar General is "a discount retailer in the United States primarily in the southern, southwestern, midwestern and eastern United States. The Company offers a selection of merchandise, including consumables, seasonal, home products and apparel. The Company's merchandise includes national brands from manufacturers, as well as private brand selections with prices at substantial discounts to national brands. It offers its merchandise at everyday low prices through its convenient small-box (approximately 7,200 square feet) locations"


Lastly, Lone Pine has disclosed a 5.6% ownership stake in DSW (DSW) with 2,045,064 shares.  This means they've over doubled their exposure to this name since the end of the second quarter.

The 13G Lone Pine filed with the SEC signifies portfolio activity on August 16th.

Per Google Finance, DSW is "a United States branded footwear and accessories specialty retailer.  DSW has two segments: the DSW segment, which includes the DSW stores and sales channels, and the leased business division segment"

For more on this hedge fund, we've also highlighted some of Lone Pine's other activity here.

Dan Loeb's Third Point Boosts Sotheby's Stake: 13D Filing

Dan Loeb's hedge fund firm Third Point has filed a 13D with the SEC regarding shares of Sotheby's (BID).  In it, they reveal a 5.7% ownership stake in BID with 3,925,000 shares.

This marks a 57% increase in their position size since the end of the second quarter.  Third Point initially started their BID stake in Q1 of this year, ramped it up in Q2, and have now added to it further.  The 13D filing was required due to portfolio activity on August 15th.

Other Activist Investors Involved

Third Point's 13D contains the standard boilerplate saying that they intend to engage the board of management.  It's also worth highlighting that another activist investor is involved in shares as well: Mick McGuire's Marcato Capital Management.  They disclosed a stake in BID at the end of July.  Additionally, Nelson Peltz's Trian Fund Management just started a new position in Sotheby's in Q2 as well.

Per Google Finance, Sotheby's is "a global auctioneer of authenticated fine art, decorative art, and jewelry. The Company operates in three segments: Auction, Finance, and Dealer. The Company's Auction segment functions as an agent by offering works of art for sale at auction and by brokering private sales of artwork. Sotheby’s also purchases and resells works of art through its Dealer segment, conducts art-related financing activities through its Finance segment and is engaged, to a lesser extent, in brand licensing activities. The Sotheby’s name is also licensed for use in connection with the art auction business in Australia, art education services in the United States and the United Kingdom and print management services."

Monday, August 26, 2013

Bill Ackman's Interview With Charlie Rose

Bill Ackman of hedge fund Pershing Square Capital Management recently appeared on Charlie Rose for an interview. 

While Ackman has been in the media a lot regarding his short position in Herbalife (HLF) and long position in J.C. Penney (JCP), this is the first appearance Ackman himself has made in quite some time.  As such, we wanted to highlight his latest thoughts on the various situations he's involved in.

Embedded below is the video of Ackman's interview:

If you missed it earlier, you can also check out Ackman's Q2 letter.

David Einhorn & Jim Chanos on Similarities Between Poker & Investing

Bloomberg recently highlighted a poker tournament featuring hedge fund managers David Einhorn and Jim Chanos.  In it, they asked the hedgies to compare poker to investing. 

Einhorn said that, "Over time, as you invest in lots and lots of stocks over a long period of time, skill I think dominates.  And the same is true in poker.  If you play lots and lots of hands and lots and lots of tournaments, eventually the better players are going to come out on top." 

Chanos added that, "Like in investing, poker you deal with incomplete information."

This comparison is by no means new.  A few years ago, we highlighted the link between hedge fund managers and poker as many hedgies have played the game and commented on the similarities.

Embedded below is the Bloomberg video:

H/T Santangel's Review

Bill Ackman's Q2 Letter: Updates on Pershing's Positions

The New York Post has shared Bill Ackman's Q2 letter and it's quite in-depth and worth highlighting.  The Pershing Square manager provides updates on many of his positions, including his new position in Air Products & Chemicals (APD), his controversial Herbalife (HLF) short, as well as their troubled stake in J.C. Penney (JCP) and more.

Embedded below is Ackman's Q2 letter:

For more from this manager, you can check out Ackman's presentation on Procter & Gamble.

What We're Reading ~ Hedge Fund Links 8/26/13

Christopher Hohn turns up heat on EADS [II Alpha]

Hedge funds lag on short problems [ValueWalk]

How the hedge fund pricing model of 2/20 is changing [247wallst]

Lansdowne's Paul Ruddock defends merits of short selling [ValueWalk]

Comparing 20-year hedge fund & S&P 500 performance [SoberLook]

Family offices are increasingly wary of hedge funds [Forbes]

Hedge funds and general solicitation - don't leap in just yet [Lexology]

The final frontier in hedge fund outsourcing [FierceFinanceIT]

Very few managers outsourcing COO role [COOConnect]

Jeff Ubben's biggest battle yet: Microsoft [II Alpha]

On Larry Summers' hedge fund stint [NYTimes]

Eric Sprott on gold [Globe & Mail]

Ackman blasts Herbalife [NYPost]

In praise of activist investment [Reuters]

JOBS act will create hedge fund jobs [HedgeCo]

As investors jump ship, SAC looks to cut back [Dealbook]

Phil Falcone/Harbinger agree to settlement [SEC]