Michael Keller's Presentation at London Value Investor Conference

We're posting up notes from the 2017 London Value Investor Conference.  Next up is Michael Keller of Brown Brothers Harriman who pitched a long of Wendel SE (EPA:MF).


Michael Keller's Presentation at London Value Investor Conference

Long: Wendel SE (EPA: MF) 

Wendel is a holding company based in France that invests in a variety of industries. It usually takes control positions and at the very least it has significant influence. The Wendel Family has overall control but professional managers run the day to day operations. They are drawn to Wendel by:

-  Attractive combination of assets
-  Most of their companies sell products that are vital to other companies
-  The stable and long-term capital structure
-  The overlap of the businesses philosophy with their own
-  A double-digit discount to NAV


Be sure to check out the rest of the presentations from the London Value Investor Conference.

Michael Keller Long Zoetis & Perrigo: London Value Investor Conference

We're posting notes from the London Value Investor Conference 2016.  Next up is Michael Keller of Brown Brothers Harriman who pitched long Zoetis (ZTS) and long Perrigo (PRGO).


Michael Keller's London Value Investor Conference Presentation

Brown Brothers Harriman are bottoms up, research intensive high quality franchise investors who look to hold stocks for at least five years. Too many investors are index huggers that charge large fees. They aim to beat the market on the way down. They focus on the full cycle even if it means missing out on some of the upside.


Investment idea: Zoetis (ZTS)

Tim Harch of Brown Brothers Harriman pitched Zoetis at the conference last year. They still like it. Zoetis is a global leader in animal health for livestock and pets. It offers a broad array of products for preventative care and disease treatment. Unlike human healthcare animal medicine does not suffer from a lack of government reimbursement issues. The secular trends in animal health are durable. Expect steady mid-single digit revenue growth.  (MF note: Bill Ackman recently sold ZTS shares.)


Investment idea: Perrigo (PRGO)

Perrigo produces white label consumer goods for chemists – pain medication, health products, branded products and generics. It holds royalty rights for Tysabri a mature MS drug with a large patient population. It is domiciled in Ireland.

There are three business drivers: the ageing demographic that favours pharma; store brand products; conversion of Rx to over the counter. The stock is down because:

- The long term CEO has left to join Valeant (VRX)
- Pricing pressures in generics
- The Omega acquisition has been less successful than expected

Keller believes the price weakness is overdone. The current valuation implies an 8% FCF.



Be sure to check out the rest of the presentations from the London Value Investor Conference.