Carl Icahn Boosts Hertz Position

Activist investor Carl Icahn has filed numerous documents to the SEC recently (13D's and Form 4's) regarding his position in Hertz Global (HTZ).  Per the most recent 13D, Icahn now owns 30.92% of the company with exposure to over 43.92 million shares (inclusive of 2.03 million shares underlying forward contracts).

His recent purchases also are via forward contracts.  Per the filing, Icahn acquired exposure to over 1.15 million shares via forward contracts that expire on September 8, 2021.
The price per share is listed at $14.73 and $15 in the transactions.  And the filing notes that these contracts "Represents a forward price of $12 per Share, plus the amount per Share the Reporting Person paid the counterparty to the forward contract upon entering into such forward contract. The forward price is subject to adjustment to account for any dividends or other distributions declared by the Issuer. In addition, the Reporting Person paid a financing charge to the counterparty to such forward contract."

What We're Reading ~ 11/8/17

Lou Simpson explains his portfolio strategy [Kellogg Insight]

Carl Icahn's making a $5 billion bet on the future of cars [Bloomberg]

A closer look at Ray Dalio's 1937 scenario for current markets [A Wealth of Common Sense]

Bill Miller has 30% of his assets in bitcoin?! [WSJ]

Analysis of Equinix and Interxion: network effects in a box [Scuttleblurb]

The psychology of designer handbags [Business of Fashion]

The biggest stock collapse in history has no end in sight [Bloomberg]

JD.com shares a better deal than Alibaba's [Barrons]

Asia has more billionaires than the US for the first time [Daily Mail]

Caesars returns to building its gaming empire [Barrons]

A look at Snap Inc [Seeking Alpha]

The war to sell you a mattress is an internet nightmare [Fast Company]

Universities take a hard look whether MBA programs are worth it [WSJ]

On trying to boost your productivity [Thrive Global]

Dmitry Balyasny Long Hertz: Invest For Kids Chicago Presentation

We're posting up notes from the Invest For Kids Chicago Conference 2017.  Next up is
Dmitry Balyasny of Balyasny Asset Management who pitched a long of Hertz (HTZ).


Dmitry Balyasny's Invest For Kids Chicago Presentation: Long Hertz

First time back at the conference in eight years…when he pitched short Japanese government bonds because the 1.5% yield couldn’t go much lower.

Long Hertz (HTZ) – prior management mishandled the company; investors are overly worried about Uber/Lyft.  44% short interest creates big opportunity to be long if things are inflecting.  >5x leverage, previously losing money – many people scared off.

Uber/Lyft threat is overstated – only about 4% overlap.  Now an oligopoly industry – HTZ was the bad actor that over-expanded, dumping excess fleet inventory into the market at low prices; the fleet has now been restructured.  Used car prices may also be turning up.  Credit card data shows positive numbers in recent months.

HTZ is ½ leisure, ½ business – both doing well.  This was the last sloppy quarter, and we want to be long the most levered player as the cycle turns.  HTZ should be able to refi its high-cost debt.  Avis repurchases ~10% of its shares each year and HTZ should get there too.  The majority of their analysts create alpha within the first 3-6 months, and that could be the case here as shorts capitulate and real investors step up to buy the stock.



For more from this event, check out the rest of the presentations from Invest For Kids Chicago 2017.

Carl Icahn Enters Forward Purchase Contracts on Herc Holdings, Adds to Freeport McMoRan Stake

Activist investor Carl Icahn has submitted a couple SEC filings recently.

Icahn Enters Forward Purchase Contracts on Herc Holdings

First, Icahn has filed a Form 4 with the SEC regarding shares of Herc Holdings (HRI), a spin-off from Hertz (HTZ).

Per the filing, Icahn has entered into forward purchase contracts on June 8th, 2017.  These contracts have a forward purchase price of $35.00 per share, plus a financing charge.  The contracts have expiration dates of June 7th, 2019.  Multiple contracts were entered via various investment vehicles Icahn controls and in total they represent 23,607 shares.

Per the company's website, Herc Holdings "previously were known as Hertz Equipment Rental Corporation or “HERC.”  We now operate in the U.S. under our new brand, Herc Rentals.  We generated revenue of $1.6 billion in 2016 and offer customers a diversified fleet of equipment valued at $3.6 billion1. We serve customers through 270 company-owned locations, primarily in North America, and have approximately 4,800 employees.  Through the years, we have been widely recognized as a pioneer and leader in the equipment rental industry, setting the standard for service and creating the performance metrics that are now commonplace for rental equipment companies."


Icahn Adds To Freeport McMoRan Stake

Second, Icahn has also filed an amended 13D with the SEC regarding his position in Freeport McMoRan (FCX).  Per the filing, Icahn now owns 6.33% of the company with over 91.58 million shares.

The filing notes that on June 6th, Icahn acquired 351,644 shares in total at $11.41 per share.

Per Google Finance, Freeport McMoRan is "a mining company. The Company operates through geographical assets with proven and probable reserves of copper, gold and molybdenum, and traded copper producer. The Company's segments include refined copper products, copper in concentrate, gold, molybdenum, oil and other. The Company's segments include the Morenci, Cerro Verde, Grasberg copper mines, the Rod & Refining operations and the United States (U.S.) Oil and Gas Operations. The Company has organized its operations into five divisions, which include North America copper mines, South America mining, Indonesia mining and Molybdenum mines. The Company's portfolio of assets includes the Grasberg minerals district in Indonesia, copper and gold deposits, and mining operations in the Americas, including the large-scale Morenci minerals district in North America and the Cerro Verde operation in South America."

Carl Icahn Buys More Hertz, Herbalife

Activist investor Carl Icahn has submitted a slew of filings to the SEC recently regarding his positions in Hertz Global Holdings (HTZ) and Herbalife (HLF). 

Also, in an interview with Bloomberg, he noted that he left Donald Trump's victory party to put about $1 billion to work betting on US equities as futures sold off sharply on the election news.  This comes only a few weeks after Icahn said companies were overvalued considering the risk premium.


Icahn Adds To Hertz Stake

Per an amended 13D, Icahn now owns 33.77% of Hertz with just over 28 million shares.  He bought on the recent sell-off on November 8th and in total purchased over 15 million shares at prices of $22.64 and $25.02.


Per Yahoo Finance, Hertz Global "engages in the car rental business in North America, Europe, Latin America, Asia, Australia, Africa, the Middle East, and New Zealand. It operates the Hertz, Dollar, Thrifty, and Firefly car rental brands in approximately 9,980 corporate and licensee locations"


Also Boosts Herbalife Holdings Again

We previously highlighted how Icahn recently bought $100 million worth of Herbalife shares.  And he's at it again, per a newly submitted 13D.  He now owns 24.18% of HLF with 22.5 million shares, up from the 21.44 million we previously reported on.  The filing was made due to activity on November 8th.

Per Google Finance, Herbalife is "a global nutrition company. The Company develops and sells weight management, healthy meals and snacks, sports and fitness, energy and targeted nutritional products, as well as personal care products."

Carl Icahn Increases Hertz Position

Activist investor Carl Icahn has submitted some recent SEC filings regarding his position in Hertz (HTZ).  Per an amended 13D filing, Icahn now owns 15.24% of Hertz with over 64.69 million shares.

This means he's boosted his stake by just shy of 1 million shares.  The Form 4 Icahn filed with the SEC indicates he bought on June 2nd and 3rd at prices of $9.96 and $9.88.

For more on this investor, we recently highlighted how Icahn has taken a stake in Allergan.

Per Google Finance, Hertz is "engaged principally in the business of renting and leasing of cars through its Hertz, Dollar, Thrifty and Firefly brands, and equipment through its Hertz Equipment Rental brand. The Company operates through four segments: U.S. Car Rental, International Car Rental, Worldwide Equipment Rental and All Other Operations. It operates over 9,980 corporate and franchisee locations in North America, Europe, Latin America, Africa, Asia, Australia, the Middle East and New Zealand. Its brands maintain separate airport counters, reservations and reservation systems, marketing and all other customer contact activities. Its Hertz brand has approximately 8,510 corporate and franchisee locations in over 150 countries. Its Dollar and Thrifty brands combined have approximately 1,345 corporate and franchisee locations in over 75 countries and its Firefly brand has approximately 100 corporate and franchisee locations in over 20 countries.."

Glenview Capital Raises Hertz Stake

Larry Robbins' hedge fund firm Glenview Capital has filed a 13G with the SEC regarding its position in Hertz (HTZ).  According to the filing, Glenview now owns 5.2% of the company with over 23.74 million shares.

This is up from the 17.6 million shares Glenview owned at the end of the second quarter.  The latest filing was made due to activity on August 25th.

We've highlighted other recent portfolio activity from Glenview here.

Hertz is also a position in activist Carl Icahn's portfolio as he has representation on the board as well.  The company's shares have been under pressure over the past year as they had to restate various financials in addition to worries about the ability to raise prices and potential competition from services like Uber.  HTZ also has a potential catalyst coming up with the spin-off of its equipment rental business.

Per Google Finance, Hertz "operates car rental business through its Hertz, Dollar, Thrifty and Firefly brands. The Company's operating segments are U.S. Car Rental, International Car Rental, Worldwide Equipment Rental and All Other Operations."

Carl Icahn Raises Hertz Global and Navistar Stakes

Activist investor Carl Icahn has filed two separate amended 13D's with the SEC.

Increases Hertz Global Stake Again

The corporate rabblerouser has continued to buy shares of Hertz Global (HTZ).  Per the SEC filing, he now owns 11.34% of the company with over 51.9 million shares.

He's increased his position size by 13.1 million more shares since the end of November and the filing was required due to portfolio activity on December 15th.

So Icahn has been very active buying HTZ shares over the past few weeks.  Hertz is analyzed in the latest issue of our Hedge Fund Wisdom newsletter if you want to read the full bull and bear cases on the name.

Per Google Finance, Hertz Global "operates in two segments: rental and leasing of cars, crossovers and light trucks (car rental), and rental of industrial, construction and material handling equipment (equipment rental).."


Adds To Navistar International Position

Icahn also filed a 13D on Navistar and disclosed he now owns 19.99% of the company with over 16.27 million shares.

This means he's boosted his position size by over 1.9 million shares since the end of the third quarter.  This filing was required due to activity on December 17th.

Per Google Finance, Navistar International is "a manufacturer of International brand commercial and military trucks, IC Bus (IC) brand buses, MaxxForce brand diesel engines, Workhorse Custom Chassis (WCC) brand chassis for motor homes and step vans, and Monaco RV (Monaco) recreational vehicles (RV), as well as a provider of service parts for all makes of trucks and trailers. In addition, it is a private-label designer and manufacturer of diesel engines for the pickup truck, van and sport utility vehicle (SUV) markets. It also provides retail, wholesale, and lease financing of trucks and parts. NIC operates in four segments: Truck, Engine, Parts and Financial Services."

Carl Icahn Raises Hertz Global Stake

Corporate activist Carl Icahn has filed an amended 13D with the SEC regarding his position in Hertz Global (HTZ).  Per the filing, Icahn now owns 10.77% of the company with over 49.2 million shares of HTZ.

This means he's recently purchased over 10.4 million shares and did the bulk of his buying on November 24th and 25th at around $24.xx per share.  Icahn's nominee for CEO, John Tague, was recently appointed to the position as Icahn looks to get the turnaround at the company started.

HTZ has been a popular stock among hedge funds.  Not to mention, another activist investor is involved too: JANA Partners.

Hertz is featured in the equity analysis section of the brand new issue of our Hedge Fund Wisdom newsletter that was just released.  For a limited time, we're having a 33% off sale and you can read the investment thesis on Hertz by signing up here.

JANA Partners Ramps Up Hertz Stake, Files 13D

Barry Rosenstein's hedge fund firm JANA Partners has filed a 13D with the SEC regarding their stake in Hertz Global Holdings (HTZ).  Per the filing, JANA now owns 7% of HTZ with over 32 million shares (including options to purchase 11.37 million shares).

They've increased their position size by over 26.1 million shares since the end of the second quarter.  The filing was required due to portfolio activity on October 10th and notes that while they were our purchasing shares in mid-October around $21.67, they also acquired a lot of shares upon the exercise of options.

JANA's 13D indicates JANA has had (and may continue to have) discussions with the board of directors regarding management succession and board composition.

They're not the only hedge fund who has been intrigued by shares of HTZ as they've fallen.  Last week we pointed out that Glenview Capital's Larry Robbins was positive on car rental companies (specifically HTZ and Avis Car Budget (CAR)).

Hertz has been somewhat of a hedge fund hotel and and lot of investors have come and gone.  As a result, shares have been more volatile.  Clearly, JANA has seen this volatility as opportunity.

JANA has been actively trading recently and we highlighted how they exited their QEP Resources stake and added to their Walgreen position.

Per Google Finance, Hertz is "its operating company and a direct wholly owned subsidiary of Hertz Investors, Inc., which is wholly owned by Hertz Holdings. Its business operates in two segments: rental and leasing of cars, crossovers and light trucks (car rental), and rental of industrial, construction and material handling equipment (equipment rental). In its equipment rental business segment, it rents equipment through approximately 340 branches in the United States, Canada, France, Spain, Italy, China and Saudi Arabia, as well as through its international licensees."

Larry Robbins: Doesn't Believe This is a Change in Tone in the Market

Glenview Capital's Larry Robbins sat down for an interview with CNBC recently and here's what he had to say:

They're looking at what's happening to the economy and to liquidity.  They don't think there's a systemic issue out there.

He says, "Our own checks with companies indicate that the economy is doing reasonably well in the US, clearly some challenges overseas.  We don't believe that this a change in tone in the market that's likely to be here to stay.  We believe that this is a transitory risk problem."

Robbins also pointed to all the good news coming the US consumer's way recently: wages up, price of oil down.

Glenview took down exposure in the second week of September (net exposure) due to the laundry list of risk items.  They've started to re-risk about halfway to where they were before, as buying opportunities have presented themselves recently.   He argued that certain stock movements have outdone their fundamentals.

He specifically pointed out the rental car industry as being annihilated recently and called it a rational oligopoly as 3 players control 95% market share.  He said the Hertz (HTZ) CEO change has happened and likes Avis Budget's (CAR) opportunity ahead.  Robbins also said the travel industry has been impacted by the ebola scare, but didn't name any companies specifically.


Embedded below are the videos of Robbins' CNBC interview:

Video 1


Video 2


You can view some of Glenview's portfolio activity here.

Carl Icahn Goes Activist on Hertz

Activist investor Carl Icahn has filed a 13D on shares of Hertz Global Holdings (HTZ).  Per the filing, Icahn now owns 8.48% of the company with 38.8 million shares. 

This is a newly disclosed position for Icahn .  The filing was made due to activity on August 12th and it notes that Icahn intends to have discussions with management relating to "shareholder value, accounting issues, operational failures, underperformance relative to its peers and (their) lack of confidence in management."

Icahn was out buying HTZ shares in late June and sporadically throughout July.  He really ramped up his purchases in mid-August though and did a lot of buying on August 20th specifically.  This is the date that shares dropped from $31 to $28 on news of revised guidance.

Icahn primarily purchased call options and sold put options referencing an aggregate of over 35.97 million shares at June 2016 strikes.

HTZ is somewhat of a hedge fund hotel.  As of the end of the second quarter, HTZ's largest shareholders included:  Glenview Capital, SRS Investment Management, Fir Tree, York Capital, Highfields Capital, D.E. Shaw, JANA Partners, Third Point, and many more.  Just recently, Fir Tree urged the board to replace the Hertz CEO.

Per Google Finance, Hertz is "a holding company. The Hertz Corporation (Hertz) is its operating company and a direct wholly owned subsidiary of Hertz Investors, Inc., which is wholly owned by Hertz Holdings. Its business operates in two segments: rental and leasing of cars, crossovers and light trucks (car rental), and rental of industrial, construction and material handling equipment (equipment rental). In its equipment rental business segment, it rents equipment through approximately 340 branches in the United States, Canada, France, Spain, Italy, China and Saudi Arabia, as well as through its international licensees."

Larry Robbins' 6 Best Ideas at Delivering Alpha Conference

At CNBC and Institutional Investor's Delivering Alpha conference today, Glenview Capital's Larry Robbins highlighted his six best ideas.

His stock picks were: Thermo Fisher Scientific (TMO) which has been his largest holding, Monsanto (MON) which he previously pitched here, as well as HCA (HCA), Hertz (HTZ), National Oilwell Varco (NOV) and Flextronics (FLEX), a position he added to in May.

He likes that all of these can raise money on the cheap and then buyback shares.  So basically, his favorite investment idea is a theme of companies levering up.

Also, today we highlighted that Robbins has been buying Carter's (CRI) shares recently too.

What We're Reading ~ Analytical Links 3/19/14

Meb Faber's new book: Global Value [Amazon]

Why we're awful at assessing risk [Morgan Housel]

Short sellers' new favorite platform: Twitter [Buzzfeed]

The most important economic chart [House of Debt]

America's weird enduring love affair with cars and houses [Atlantic]

Addressing growing student debt [Econbrowser]

One little watched indicator for rising rates is flashing red [Investment News]

Saving, lending and tapering combine in perfect storm [Scott Grannis]

Hertz is in the driver's seat [Barrons]

American Express to spin off business travel unit [Bloomberg]

On CBS' IPO of its Americas Outdoor unit [Hollywood Reporter]

Assessing risk in China's shadow banking system [Triple Crisis]

What if all of Africa was as digital as Kenya? [Financial Access]

Russian richest face margin calls with billions at stake [Bloomberg]

Uh, warning sign? 3 reasons to tap home equity to buy stocks [MSN Money]

An interview with Bill Gates [Rolling Stone]

Interview with Apple's Jonathan Ive [Time]

Jamie Dinan's Rules of Investing & Current Market Thoughts (York Capital)

Jamie Dinan of hedge fund York Capital made a rare appearance on CNBC today and talked about his current market outlook, his rules of investing, and some of his stock picks these days.


Current market thoughts:  Instead of likening last year's positive market return to that of a beta move, he called it "an engagement move," as both investors and companies re-engaged.  Dinan says it's definitely a stock picker's market right now as corporate activity has picked up.


Latest exposures:  While his largest exposure is the US, he says York is increasingly moving to Europe for opportunities.  "We think European equities are apples to apples less expensive than their North American counterparts."  He also thinks the dealflow in Europe is about 6-12 months behind the US and he anticipates it picking up.


Dinan's rules of investing: He says the best thing to do in investing is learn from your mistakes.  His rules are:  focus on liquidity (so you can get out if you're wrong), be diversified, always be diversified (you never know where the dangers are gonna hit).

He says managing position sizes is also key (they run 50-60 positions at 1-4% position sizes).  Dinan argues to size positions not by how much you can make, but by how much you can lose.  The last important thing is leverage (or lack thereof).   He also noted that, "I find the trick in investing is to try not to give too much back" (after you're up a good amount).


York's stock picks:  They continue to like American Airlines (AAL) as the merger has completed and the industry is starting to act a lot more rational and margins are improving.  He thinks AAL can earn $6+ next year and applies a 10x multiple to that number.  And when looking at stocks they own that are up a lot, they ask themselves: "If we didn't own it, would we buy it today?"  He says AAL falls in this category and they'd still buy it.  As noted in our newly released Hedge Fund Wisdom issue, AAL was a consensus buy among the hedge funds tracked in Q4.

York also likes a potential consolidation play between Men's Wearhouse (MW) and Jos A. Bank (JOSB) as he highlights the potential cost savings that could come from a merger here.  He feels you can double the profitability if the companies combine. 

Dinan also touched on his stake in Hertz (HTZ) as he likes how the industry has consolidated and the fleet has rationalized.  He also highlights their equipment rental business that they think could be spun-off and the company could take advantage of its balance sheet and buyback stock.

Embedded below are the videos of Dinan's interview:

Video 1

Video 2

Video 3

Video 4


For more on York Capital's leading man, check out Dinan's other recent interview.

What We're Reading ~ Hedge Fund Links 1/10/14

It's always relative.. that is, in performance [All About Alpha]

The obsession of John Paulson [AI-CIO]

Hedge funds cut 2 & 20 pricing [Fool]

Ackman issues status update on Herbalife [ZeroHedge]

Loeb takes position in Hertz, sources say [CNBC]

Jeff Ubben warns on let-down of activist investment boom [FT]

Update on Julian Robertson's new seeding platform [Dealbook]

On hedge fund proteges [Research Puzzle]

Third Point alum Bow Street bullish on media & telecom [ValueWalk]

Rare videos of Steve Cohen asked about securities laws [PBS]

Agecroft Partners' top 10 hedge fund industry predictions [FINalternatives]

Abenomics drives Japan hedge funds to world's top performers [Bloomberg]

China proves better bet than Japan for Asia hedge fund investors [HedgeWorld]

After scandal, SAC alums raising piles of cash [CNBC]

Harbinger knocks Dish's bid for Lightsquared's spectrum [HedgeWorld]

What We're Reading ~ Analytical Links 1/8/14

Investors/entrepreneurs predict trends, stocks & private companies to watch in 2014 [Forbes]

Compilation of what a lot of people learned in 2013 [Reformed Broker]

Individual investor stock allocation hits post-crisis high [Pragmatic Capitalism]

The world economy's shifting challenges [George Soros]

The best financial advice I ever got (or gave) [WSJ]

The 2014 buy list from [Crossing Wall Street]

Winners of 2013: boring investors [WSJ]

Why the P/E ratio doesn't always matter but cash flow is crucial [ValueWalk]

More 2014 predictions from market watchers [Yahoo Finance]

Liberty Media seeks full ownership of Sirius XM [Dealbook]

Billionaire Malone returns to empire building amid cord cutting [Bloomberg]

Hertz eyes sale of equipment rental unit [FT]

Venture Capitalists predict where they'll invest in 2014 [Forbes]

The art of misdirection [TED]

The 'internet of things' could be the next industrial revolution [DenverPost]

Jamie Dinan Likes Airlines, Hertz & Sprint/T-Mobile: Interview

York Capital's James Dinan appeared on CNBC today and talked about his latest market views.

He said they own most of the major airlines and notes these companies are now being run like businesses and can make money even at $95 oil.

He specifically mentioned American Airlines (AAL) and thinks there's great optionality here as they've merged with US Air and will have a great management team.  While some of these mergers can be rocky at the start, he thinks the value will be realized.  This has been a big hedge fund trade as of late with the likes of David Tepper and Julian Robertson also being involved in many of these names.

Dinan's biggest position is Hertz (HTZ) and he says it's a consolidation play as they'll see cost savings and revenue synergies from the Dollar Thrifty merger as well as fleet rationalization.  A few quarters ago, our Hedge Fund Wisdom newsletter flagged this popular trade and posted a write-up on Avis Budget (CAR), another beneficiary of the consolidation.

York thinks that this environment is great for event-driven investing, especially due to low interest rates.  Dinan also sees earnings going up next year and thinks companies will continue to do buybacks.  He also said he likes Sprint (S) and T-Mobile (TMUS).


Here are the videos of Dinan's appearance:

Video 1


Video 2


Video 3


Video 4

What We're Reading ~ Analytical Links 5/29/13

Is the U.S. the next hot 'emerging market'? [WSJ]

Margin debt hits a record [WSJ]

The bull case on Hertz Global (HTZ) [Barron's]

TripAdvisor's (TRIP) margins could expand after years of slimming [Trefis]

On cutting your losses [The Atlantic]

Goldman Sachs says AIG shares still most loved by hedge funds [Marketwatch]

On share repurchase fever [Capital Observer]

What happens when QE ends [AllStarCharts]

Searching for yield [Mebane Faber]

If you only know 5 things about investing, make it these [Motley Fool]

Bid on lunch with Warren Buffett [eBay]

Activist investors: let's do it my way [The Economist]

Atlas of public stocks: mapping all publicly listed companies [Simoleon Sense]

Embrace the business model that threatens you [Harvard Business Review]

Behavioral investing principles are more relevant than ever [Institutional Investor]

PepsiCo (PEP) resistance against activists looks futile [Reuters]

A rush to recruit young analysts only months on the job [Dealbook]

Studying the dark art of leaking deal talks [Dealbook]

House flipping back in style [WSJ]

Notes From Value Investing Congress Las Vegas 2013: Day 2

Yesterday we posted up some quick notes from day 1 of the 2013 Value Investing Congress in Las Vegas and today we'll highlight key takeaways from day 2 below:


Whitney Tilson, Kase Capital: AIG, Hertz (HTZ)

He talked about how American International Group (AIG) is still a position he likes as it's still cheap and the company has been streamlined to something much easier to understand and there's been a lot of advancement since the financial crisis and even since last year.  It's around 14% of his portfolio and was his largest position as of last month.  Tilson also likes his long of Berkshire Hathaway (BRK.A / BRK.B) and recently adjusted his intrinsic value figure to just north of $193,000.  Additionally, he mentioned he's started a new position in Hertz (HTZ) and you can read the pitch on Hertz in this newsletter that convinced him.


Guy Gottfried, Rational Investment Group: WPX Energy (WPX)

His pitch was on WPX Energy, a spin-off from Williams Companies last year.  He says it trades at 8x free cashflow and .66x book value.  Gottfried feels it's a very cheap stock for a play on natural gas that doesn't require gas prices to head higher.


Mark Boyar, Boyar Value Group: Weight Watchers (WTW), Dole Foods (DOLE), Western Union (WU)

He thinks we might be in the midst of multiple expansion.  Boyar likes Weight Watchers (WTW) as a play on the weight management industry and notes it's down 50% over the past 12 months.  He also pitched Dole Foods (DOLE) as the company reduced its debt load by selling the packaged foods business.  His third and final pick was Western Union (WU).


Vitaliy Katsenelson, Investment Management Associates: Whistler Blackcomb (WB.TO)

He said that profit growth is slowing down and that the market is actually getting expensive on a P/E basis.  Katsenelson argued that there's no secular bull market, at least not yet.  In the mean time, he likes stocks with solid dividends and says that the vast majority of returns in sideways markets are derived from dividends.  He's the author of The Little Book of Sideways Markets, by the way.  His pick was a high dividend payer (over 7%) in Whistler Blackcomb, the owner of the popular ski resort.  He likes their lower costs due to no property development etc.


Zeke Ashton, Centaur Capital Partners: Fidelity National (FNF), First American (FAF)

He emphasized the importance of learning from mistakes.  While you will encounter your own mistakes as an investor, it's also easy to learn from others' mistakes too.  Ashton argued that emotional mistakes are much more prevalent than analytical ones and so obviously behavioral finance is an important part of investing.  As far as current opportunities in the market go, he's having a hard time finding good ones as so many shares have been bid up.  He's not a big fan of homebuilders but if you want a play on housing, he said to look at the title insurers as a proxy with lower risk.  His picks were Fidelity National (FNF) and First American (FAF).


Joe Altman & Chris Kyriopoulos, COMPOUND Capital: TARP Warrants, Nathan's (NATH)

They launched their fund at a hell of a time: during the financial crisis when Lehman Brothers failed.  These two mentioned that they like TARP warrants, which we'd note has been a hedge fund favorite (especially AIG and BAC warrants, though Compound prefers AIG and COF ones).  They note these are liquid plays that are often underfollowed.  However, their pitch today was Nathan's (NATH), the popular hot dog proprietor.


David Hurwitz, SC Fundamental: Long KISCO, Short Salesforce.com (CRM)

He pitched one long: KISCO in Korea (001940.KRX) and one short: Salesforce.com (CRM).  He says KISCO is much cheaper than CRM.


Chris Mittleman, Mittleman Brothers:  Revlon (REV)

He pitched this as a turnaround story, praising management for a good effort.  Ron Perelman owns a ton of the company and that's partially the reason it's so cheap.  Mittleman likes that it's essentially a recession resistant business.  A solid portion of their revenues come from Walmart.  He also mentioned Carmike Cinemas (CKEC).


Ori Eyal, Emerging Value Capital: Hilan Tech

Eyal talked about the opportunities to invest in Israel, somewhere he specializes in (launching the Emerging Value Israel Fund).  He says the country is stable and pro-business and has a growing economy.  He pitched Hilan Tech, which he dubbed the 'ADP of Israel.'  He says Israeli stocks on the whole are cheap as they've largely traded sideways the past few years.


Harris Kupperman, Mongolia Growth Group: Real Estate

He touched on how there's too many investors out there all doing the exact same thing (i.e. herding).  One place that there certainly aren't many investors involved is Mongolia.  He says the country's GDP will explode 10x over the next decade or so, creating a big opportunity and he recommended real estate there.


For more from this event, head to notes from day 1 of the Value Investing Congress.