Invest For Kids Chicago Notes 2013: Lasry, Eisman, Peltz, Cooperman & More

The fifth annual Invest For Kids Chicago conference just took place and MarketFolly has notes from the event which featured tons of prominent hedge fund managers presenting investment ideas to benefit charities.


Notes From Invest For Kids Chicago 2013

- Marc Lasry (Avenue Capital): Long JC Penney & Connacher Debt

- Lee Cooperman (Omega Advisors): 4 long ideas

- Steve Eisman (Emrys Partners): Long Ocwen Financial & Altisource Portfolio Solutions

- Nelson Peltz (Trian Fund): Presentaiton on Mondelez

- Dinakar Singh (TPG-Axon): 2 investment ideas

- Sam Zell (Equity Group Investments): Real estate thoughts

- Jeff Gundlach (DoubleLine): His presentation

- Mark Kingdon (Kingdon Capital): Thesis on Boeing & Aegerion Pharma

- Steve Kuhn (Pine River Capital): Pitch on American Capital

- Rick Rieder (BlackRock): His presentation

- Stephen White (Castle Union): Pitch on Avid Technology

- Peter Zaldivar (Kabouter Management): Long Hotel Shilla

Mark Kingdon's Thesis on Boeing & Aegerion Pharma: Invest For Kids Chicago

Next up in our notes from Invest For Kids Chicago 2013 is Mark Kingdon of Kingdon Asset Management.   He pitched two ideas: Aegerion Pharma (AEGR) and Boeing (BA).


Mark Kingdon's Presentation at Invest For Kids Chicago

•    $1.6 million dollars 30 years ago; 17% CAGR 30 years
•    Generally positive view on global economy and equities
•    Increasing auto and housing outlook

•    Special situations:

•    Idea #1: Aegerion Pharma (AEGR)
•    Drug is Juxtapid
•    Orphan drug for HOHF (ultra high cholesterol)
•    Original thought was 300 patients in US and 900 worldwide
•    Actually though TAM of 15,000 patients or more (no pediatric assumed)
•    $295,000 per year per patient leads to $25 EPS
•    Sell side is now upping patient forecast to 15,000
•    Upcoming testing in children, Japan is growing


•    Idea #2: Boeing (BA): thinks it's undervalued
•    5 years late and well over budget
•    First major plans designed from ground up since 1960’s
•    Terrific customer experience and better for carriers
•    787 is very economical to operate
•    (no rivets rather using special glue)
•    Boeing CEO – payback could be as low as two years.
•    Used to be 5% payback on a plane and now expected return is 30%
•    Airline industry is facing rising demand
•    8 year backlog for planes
•    2015 is mid-cycle
•    12 FCF (low end of 2015) x 14 multiple = 156 stock
•    Boeing has promised to return 80% of FCF to shareholders
•    Multiple should rise, backlog is strong


Check out the rest of the hedge fund presentations from Invest For Kids Chicago here.

Delivering Alpha Best Ideas Panel: Mark Kingdon, Chris Hohn, Jim Chanos, Lee Cooperman

The Delivering Alpha Conference today featured a 'best ideas' panel that featured some hedge fund titans including Jim Chanos (Kynikos Associates), Chris Hohn (Children's Investment Fund), Mark Kingdon (Kingdon Capital), and Lee Cooperman (Omega Advisors).  Here's a brief summary of their picks:

Mark Kingdon, Kingdon Capital

Long Japanese automakers: Long Toyota (TM), Long Fuji Heavy (7270.TO) Long Mazda (7261.JP)

He says these companies obviously benefit from Abenomics in Japan.  Toyota he likes as an innovative leader with focus on hybrid technology.  Fuji Heavy (Subaru) is moving from low margin to high margin products.   He says Mazda might have the most upside of the names. 

Chris Cooper-Hohn, Children's Investment Fund

Long Porsche (PAH3.DE) - It's basically a holding company owning 150 million shares of Volkswagen.  If the two merge eventually, the stock doubles.  We've highlighted Hohn's thesis on Porsche before.

Long EADS (EAD.FR) - A liquid large cap with a new focus on making money.  Could double over 2 years. 

Long Aurizon Holdings (AZJ.AU)- Australian railroad, a total turnaround story as the company has transitioned from government-owned to a company more aimed at profit.  He thinks it could double over next 3 years


Lee Cooperman, Omega Advisors

Long Qualcomm (QCOM) - points to a large amount of cash on the balance sheet and a lot of pessimism on the name.

Long Sandridge (SD) - could be a double.

Long Express Scripts (ESRX) - company is growing and buying back stock.  We've also posted up another Cooperman interview recently where he talked about other stocks he likes.


Jim Chanos, Kynikos Associates

Short Caterpillar (CAT) - a bet on China's property development slowdown and he says the company is just exposed to the wrong products at the wrong part of the cycle.  Here's Chanos' pitch on CAT here.

Short Hewlett Packard (HPQ) - he also reiterated his call against the PC, saying it's dying a slow death.  This has been a longstanding short and we've posted up Chanos' thesis on HPQ as he called it a value trap last year.



For more from the Delivering Alpha Conference, head to:

- John Paulson on gold, real estate & merger arbitrage

- Nelson Peltz on PepsiCo & Mondelez

- Larry Robbins & Jacob Gottlieb on healthcare plays

- Carl Icahn on activism