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
Wednesday, October 30, 2013
Invest For Kids Chicago Notes 2013: Lasry, Eisman, Peltz, Cooperman & More
Peter Zaldivar's Hotel Shilla Pitch at Invest For Kids Chicago
Next up in our notes from Invest For Kids Chicago 2013 is Peter Zaldivar of Kabouter Management. He was part of the emerging manager panel and presented a long of Hotel Shilla (008770).
Peter Zaldivar's Presentation at Invest For Kids Chicago
• International focus; looks for smaller underloved companies
• Hotel Shilla (008770)
• $2.4 billion market cap
• 2 hotels in Korea (10% of sales) and duty free shops (90% of sales)
• 6 locations generate $6 billion of sales
• Duopoly – 35% versus 50% Lotte (private)
• Fast growth of 15% and accelerating
• Barriers to entry are scale and government licenses
• Chinese are getting richer – number of rich Chinese are growing substantially
• Korea wants tourism and China is only 90 min away
• Cosmetic surgery – world center for plastic surgery
• Most important thing is that they sell luxury brands for less (as in 40% less than in mainland China)
• South Korea has a tourist police force that verify authenticity
• Chinese half of customer base and growing at 30% per year
• More Chinese are getting passports – still less than 10%
• Yet Hotel Shilla is trading at 17.2x 2014E earnings
• 28% upside in a base case
• 69% upside implied by a slight premium to comps
• Same P/E as European counterparts would imply a 60% gain
Check out the rest of the hedge fund presentations from Invest For Kids Chicago here.
