Joe Altman & Chris Kyriopoulos, COMPOUND Capital: To Infinity…And Beyond! from the 9th Annual Value Investing Congress.

Joe Altman

Joe Altman is a Co-Founder & Principal of COMPOUND Capital Management, a Nashville-based, value-focused fund. COMPOUND’s objective is long-term capital appreciation while limiting the risk of permanent capital loss. Prior to starting COMPOUND in 2008, Altman was PM for a family office, which invested in both public and private companies.

Chris Kyriopoulos is a Co-Founder & Principal of COMPOUND Capital Management. Prior to starting COMPOUND, Kyriopoulos was a Partner at Clayton Associates, a fund, which  invests in private companies. He is a graduate of the University of Virginia.

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Joe Altman & Chris Kyriopoulos live coverage

L/S hedge fund out of Nashville, with $42M in assets.  They are able to think more clearly and slowly in Nashville vs New York.

Laying out 2 investment ideas (look for stocks that are under-followed or may have a misleading name)

Ascent Capital Group Inc (NYSE:ASCMA)–Monitronics is an alarm company

John Malone owns the majority of the B shares

$2.5B enterprise value

High debt, but very high free cash flow.  Asset light model and acquirer of alarm contracts.

38% steady state net operating flow margins (SSNOCF)

Generally trade in the 10-14% range.  ADT trades at 12x EV/SSNOCF, while ASCMA trades at 9.7x

Price target: $125  (they will own until the equity is taken from them, ie bought out….maybe by John Malone)

(4:58pm EST) –Next Idea

Covanta Holdings (NYSE:CVA) –controls 2/3rd of US waste to energy disposal

$4.8B enterprise value

Sam Zell is the chairman and largest holder.

Disclosure:  Kirr Marbach is a large shareholder of ASCMA.  We may trade in and out of ASCMA without further acknowledgement.  This is not Kirr Marbach’s opinion.

 

ValueWalk readers can get a 53% discount on the Value Investing Congress in Vegas (April 3rd and 4th), just use this link to register.

Use code ‘WALK’ to save an extra $100.