Philip Hilal's Sohn Canada Presentation: Long SS&C Technologies

We're posting up notes from the Sohn Canada Investment Conference 2015 (Capitalize For Kids.)  Next up is Philip Hilal from Clearfield Capital.  He pitched SS&C Technologies (SSNC) as a long.

Philip Hilal's Capitalize For Kids Presentation

-    Special situations such as companies undergoing transformation.  Previously worked at Kingdon and Bill Ackman is reportedly an investor
-    LONG SS&C Technologies (SSNC)
-    Market Cap $7Bn, sees 40% upside
-    Serves the financial services industry with administration for hedge funds among other services
-    Sell side doesn’t follow closely, under appreciates the synergies in the 3 most recent acquisitions
-    They have mission critical software – regulation will drive more business going forward
-    Highly recurring revenue with 90% retention
-    High margins over 40% EBITDA margin and high FCF
-    Bill Stone is CEO, has completed 40 acquisitions and owns 12MM shares
-    Has a history of improving acquired businesses
-    Still small in industry and has room to expand
-    These 3 transformative acquisitions stand to double EBITDA
-    Advent acquisition should be 25% accretive and Citi Fund services should be 18% accretive
-    $5 earnings forecast for 2017 and a 20x multiple applied puts stock at $100, compared to current levels ~$70
-    Catalyst: Nov 4 2015, investor day, may refresh guidance on synergies in acquisitions
-    Risks: Integration (mitigant: long history of integrating businesses), Organic growth decline (mitigant: possible but most likely temporary), and leverage (successful history of deleveraging)


Be sure to check out the rest of the presentations from the Capitalize For Kids Conference.

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.