Notes From Invest For Kids Chicago Conference 2017: Balyasny, Zell, Litowitz & More

The 9th annual Invest For Kids Chicago conference recently concluded and featured top investors sharing investment picks to benefit charitable organizations.

Last year's conference picks returned 22.9% in an equal-weighted portfolio over the past year.  Here are this year's picks: click each link to go to that speaker's presentation.


Invest For Kids Chicago Notes 2017

- Dmitry Balyasny (Balyasny Asset Management): long Hertz (HTZ)

- Sam Zell (Equity Group Investments): On retail real estate 

- Alec Litowitz (Magnetar): Presentation

- Amos Meron, (Empyrean Capital): long Seritage (SRG)

- Rajiv Jain (GQG Partners): long Sberbank (SBER.RU)

- Rick Reider (Blackrock): long emerging markets debt

- Jimmy Levin (Oz Management): Long Chinese banks

- Mathew Klody (MCN Capital): short Domino's (DPZ)

- Seth Singerman (Singerman Real Estate): long Washington Prime Group (WPG)

- Bart Stephens, Blockchain Capital: bullish bitcoin, ethereum, blockchain

Seth Singerman Long Washington Prime Group: Invest For Kids Chicago Presentation

We're posting up notes from the Invest For Kids Chicago Conference 2017.  Next up is Seth Singerman of Singerman Real Estate who pitched a long of Washington Prime Group (WPG).


Seth Singerman's Invest For Kids Chicago Presentation: Long Washington Prime Group

“Retail Apocalypse” has arrived.  The $100 billion increase in Amazon’s market cap since January is greater than the combined value of all REIT market caps.

Washington Prime Group (WPG) has a 12% dividend yield that is well covered, a 15% FCF yield, and trades < 7x earnings at a 10% cap rate.  30% upside if sentiment improves.  Only four analysts cover WPG.

Trades like a B-mall company but most of WPG’s value is better than B. CEO of Simon owns $250 mm of WPG stock.  WPG trades below the valuations of its own retail tenants.

Valuation: $10 base case, $7 down, $11.75 up over 3-4 years.  Rouse is a good comp; CBL is not a good comp.  WPG has low debt/EBITDA and no maturities over the next five years.



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