Robin Hood Investors Conference just wrapped up with more long and short ideas coming from the top managers in the hedge fund industry. The original Tiger, Julian Robertson shared his insights on the market in a session moderated by John Griffin. Robertson mentioned that he was very bullish on Delta Air Lines, Inc. (NYSE:DAL).
Robin Hood Conference Day 2 features exciting ideas
Barry Sternlicht, CEO of Starwood Capital Group also spoke at the conference, where he said he was long real estate. Watch the interview with Bloomberg here.
Bill Ackman once again presented his short thesis on Herbalife Ltd. (NYSE:HLF). He later appeared on Bloomberg where he said that they were in constant contact with regulators but he cannot share the progress as the meetings are confidential.
Take a look at Day 1: Robin Hood Conference: Best Ideas From Einhorn, Loeb, Ainslie, Kuhn
Here is a roundup of the top ideas from the Day 2 of the conference.
Stanley Druckenmiller – Short IBM
Much to everyone’s surprise, Stan Druckenmiller revealed a short bet in the tech giant, International Business Machines Corp. (NYSE:IBM). The even more interesting part is that IBM is one of the largest holdings of Warren Buffett who Druckenmiller said he had immense respect for, but added that Buffett is not an expert in technology. Druckenmiller said that if someone wants to go short innovation, they would be long IBM.
While speaking to Stephanie Rhule on Bloomberg, Druckenmiller said it was one his more high conviction shorts. He said that free cash flow has dwindled from $16 billion to $13 billion this year and that was a major truth-teller. Druckenmiller further said that IBM’s technology will be replaced by the cloud and the company is not focused on innovation which has been affecting sales.
Druckenmiller also mentioned Google Inc (NASDAQ:GOOG) at the conference, Druckenmiller thinks Google is the master innovator. He also agreed with Julian Robertson’s long take on Delta Air Lines, Inc. (NYSE:DAL).
Whitney Tilson – Short Lumber Liquidators
Whitney Tilson of Kase Capital Management pitched short in Lumber Liquidators Holdings Inc (NYSE:LL) at the Robin Hood Conference. Stock dived over 9% in reaction to Tilson’s short bet.
In his presentation titled, “If Something Seems to Good to Be True… Why I’m Short Lumber Liquidators,” Tilson expressed his doubts on the fairness of LL’s business. He said that something was out of place in the company’s gross margins, adding that it could be because it is buying timber illegally in Eastern Russia.
His main takeaway: Something funky is going on with the company’s gross margins, which could be due to the purchase of illegal timber from Eastern Russia.
Lumber Liquidators Holdings Inc (NYSE:LL) has also acknowledged that its importing practices were being scrutinized by U.S. regulators.
Take a look at Philippe Laffont’s take on the tech industry
Nehal Chopra – Long Post Holdings
Nehal Chopra, the up and coming hedge fund star pitched long in Post Holdings Inc (NYSE:POST), the cereal company. Chopra was formerly a portfolio manager at Balyasny Asset Management and launched Tiger Ratan in 2009, which is up 37% YTD
She said that the cereal business has been very stable over the past years. With regard to Post Holdings, she said that the company just got a very exciting CEO, Bill Stiritz. Chopra said that the company is diversifying into healthier cereals and that can only prove beneficial in the long run.
Watch Nehal Chopra’s comments on Post Holdings here.
While on CNBC, Chopra also shared her views on Charter Communications, Inc. (NASDAQ:CHTR) and the potential bid for Time Warner, adding that the consolidation of the cable industry can only be good. Chopra talked about small pharmaceuticals, including Valeant Pharmaceuticals Intl Inc (NYSE:VRX). Nehal Chopra’s Tiger Ratan is beating the high end this year, the fund is up 37% through the year.
Larry Robbins – Long Meritor
We could not confirm this pitch but there was a report that Larry Robbins pitched Meritor Inc (NYSE:MTOR) at the Robin Hood Conference. The founder of Glenview Capital already holds over 9 million shares of the company so it won’t be a surprise if he did.
Meritor manufactures equipment for the transportation and industrial sectors and shares are up 57% YTD. Later Robbins appeared on CNBC and talked about his how he is bullish on hospital stocks and also about Obamacare.
Alex Sacerdote – Long Softbank
Alex Sacerdote of Whale Rock Capital was another speaker who pitched long in Softbank Corp (OTCMKTS:SFTBF) (TYO:9984), the Japanese internet and entertainment company. Whale Rock is doing pretty well, the fund is up 41% YTD.
Sacerdote said that Softbank is the best setup we have seen since Apple Inc. (NASDAQ:AAPL), and it has major market penetration. While talking to Scott Wapner on CNBC, he said,
“There’s three things we look for. The first is a major market inflecting on the upturn, and China e-commerce is the mother of all s-curves. We’ve never seen anything like this.”