The 2024 Sohn Funding Convention happened in New York happened Wednesday, with a slew of hedge fund managers highlighting their prime concepts. Among the many shares talked about are an e-commerce platform, a semiconductor title and a chemical compounds firm out of Europe. The occasion additionally options concepts from rising stars throughout the hedge fund business. It additionally included the Sohn “Idea Contest Winner.” Listed here are a number of the prime picks talked about: Vijay Shilpiekandula, Duquesne Household Workplace Funding Concept: ASML Vijay Shilpiekandula of Duquesne Household Workplace, who was named the Sohn Concept Contest Winner, introduced ASML as his greatest inventory thought. The Dutch semiconductor firm is an “R & D powerhouse” and “high-quality business” that appears enticing on a growth-adjusted foundation in comparison with friends, the investor stated. A future potential catalyst he is trying ahead to is ASML’s investor day on April 17, the place Shilpiekandula expects administration commentary about alternatives in high-bandwidth reminiscence and generative AI. “What I find like good opportunity for investors in the market to think about right now is to be creative about the long-term capacities and the long-term earnings potential of this company based on this gold rush that all these memory makers and large language models are chasing,” Shilpiekandula stated. Shares of ASML are up 29.5% this 12 months. The corporate beat fourth-quarter income and revenue expectations, however stated its income for this 12 months can be much like that of 2023. Jesse Cohn, Elliott Funding Administration Funding Concept: Etsy E-commerce platform Etsy is an undervalued firm, in response to Elliott Funding Administration managing associate Jesse Cohn. His agency owns over 10% of excellent shares, which he stated has a “really good business model” because it has proved to be extremely worthwhile and intensely cash-generative. Whereas he maintains that Etsy is a sturdy enterprise, he famous that Etsy has meaningfully underperformed the broader market, as the corporate has misplaced 19.6% 12 months to this point as a consequence of ongoing macroeconomic struggles in shopper spending for the reason that Covid pandemic. That ought to be a possibility for funding, in response to the activist investor, nonetheless. Etsy “trades in-line now with load and no growth peers across internet, e-commerce and traditional retail,” Cohn stated. “On a cash flow basis, it trades at a discount to Bath & Body Works, Gap. … It’s relatively early in its operational and monetization process.” Seth Fischer, Oasis Administration Funding Concept: Kao There’s an underappreciated shopping for alternative in Japanese international chemical compounds firm Kao, in response to Seth Fischer, founder and CIO at Oasis Administration. Kao, the corporate behind Biore, Curel and different cosmetics manufacturers, has a beautiful portfolio of merchandise which have but to understand their full potential, Fischer stated. This may be modified with extra international advertising initiatives, he famous. The Japanese inventory is flat on the 12 months, even because the Nikkei 225 is increased by greater than 17% because the Japanese index scaled contemporary all-time highs this 12 months. “They have great technology, many interesting products, but they have yet to translate that into any sort of growth mindset,” Fischer stated. “But we think it’s a Sleeping Beauty.” David Einhorn, Greenlight Capital Funding Funding thought: Solvay Greenlight’s David Einhorn unveiled Solvay as his prime funding thought , saying the European chemical compounds firm is a market chief with a beautiful valuation. “Solvay is an essential chemical company that holds the number one position across all of its markets” Einhorn stated. “While all of these are thought of as commodity businesses, they are higher margin and much more stable than most commodity chemical businesses.” Solvay shares are down greater than 3% 12 months to this point. Over the previous 12 months, they’ve tumbled greater than 70%. Michael Buckley, Duquesne Household Workplace Funding thought: Natera Natera, a medical diagnostics firm, might have enormous upside based mostly on the power of its oncology enterprise, in response to Michael Buckley, portfolio supervisor at Duquesne Household Workplace. Natera shares are increased by greater than 47% this 12 months. Buckley stated the agency’s oncology phase, which he stated has the potential to detect most cancers earlier in sufferers than has a CT scan, can drive the corporate’s revenues going ahead. At present, two-thirds of the corporate’s income comes from its girls’s well being enterprise, he stated. What’s extra, he expects that the corporate will be capable of attain profitability ahead of the Avenue at the moment anticipates. “Not only is it an exciting stock with incredible growth potential, but it’s one of the few healthcare companies that can both dramatically improve patient outcomes while lowering total system costs,” he stated. Mohammed Anjarwala, Creation International Alternatives Funding Concept: Carpenter Know-how Carpenter Know-how is an underappreciated enterprise within the aerospace business that can be a play on the backlog of planes from Boeing and Airbus, stated Mohammed Anjarwala, managing director at Creation International Alternatives. “We think Carpenter is one of the best ways to play the growing backlog of planes at Boeing and Airbus, as they ramp up their billing rates,” Anjarwala stated. Carpenter is a number one provider of specialty alloys for the aerospace business, a market with excessive obstacles to entry given stringent testing necessities for components, Anjarwala famous. The investor stated Carpenter, certainly one of simply three suppliers, has cornered roughly 40% of the market. What’s extra, the corporate can profit from the rise in journey as international incomes rise. The managing director expects the inventory might commerce at $200 per share, or 20 instances ahead P/E, across the identical degree of its friends. At present, it trades a bit above $70 per share, roughly at a 17 instances ahead P/E. The inventory is up by 3.6% this 12 months. They jumped 3% on Wednesday.
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