Sahm Adrangi's 2 Long Ideas at Capitalize For Kids Sohn Canada Conference ~ market folly

Tuesday, October 28, 2014

Sahm Adrangi's 2 Long Ideas at Capitalize For Kids Sohn Canada Conference

We're posting up notes from the Capitalize For Kids Sohn Canada conference that just took place.  Next up is Sahm Adrangi of Kerrisdale Capital who pitched two long ideas.

Sahm Adrangi's Sohn Canada Presentation

Address the crowd regarding his recent GSAT short. Mentioned holding your own conference/presentation is a good way to articulate your point.

Pitched LONG SS&C Technologies Holdings (SSNC). It’s a hedge fund administrator company, considered one of the top 5 companies. Very sticky customer base – similar to the way firms don’t change accountants, funds also avoid changing fund administrators, enormous hassle and data/history is often hard to transfer from one to another. Believes the company should trade at 20x FCF and has grown over 20% Revenue CAGR last 10 year (from organic growth). Posted any average retention rate of 90%, again, highlighting the stickiness of the business.

Next, pitched LONG Cognizant Technology Solutions (CTSH). This is a high performing IT service business which has recently experienced a weak quarter. Operations in India, causing a low cost provide advantage. Enjoys multi-year contracts to ensure a steady revenue stream and has a $3.5B contract over 7 years (health net). Price target of $70 using DCF valuation.

Be sure to check out the rest of the presentations from Capitalize For Kids Sohn Canada here.

blog comments powered by Disqus