Aaron Cowen has over 17 years of experience as a Portfolio Manager and Research Analyst. Prior to forming Suvretta, he served as a Portfolio Manager at Soros Fund Management where he independently managed the largest long/short equity portfolio with AUM of $800 million and more than $1 billion in gross exposure. While at Soros Fund Management, Aaron Cowen also advised CIO Keith Anderson on managing a larger center book of equities and led a team of research analysts. Aaron Cowen spoke today at the Capitalize For Kids Conference in Toronto and presented his favorite idea. Below are some (very) informal notes from Cowen who pitches Burger King Worldwide Inc (NYSE:BKW).

ValueWalk will be covering the conference today and tomorrow. Sign up for our free newsletter to ensure you do not miss any coverage.

Also see: Jeff Smith Bullish On Yahoo, Darden, MeadWestvacoJamie Dinan Likes TWC As Merger Arb Idea; TAP As Event Driven Idea Guy Gottfried Pitches Long Tree Island Steel At Capitalize For Kids and Lee Ainslie Pitches Long Qihoo 360 At Capitalize For Kids

 

Aaron Cowen of Survetta Capital pitching Burger King Worldwide Inc (NYSE:BKW)

 

Path to $2/share in fcf

View it as a bond that grows

Tim Horton acquisition was a game changer

3g is the real deal in terms of operators

potential to do more deal

 

Aaron Cowen on Liberty Global plc (NASDAQ:LBTYA)

 

25% FCF compounder

top line growth

 

Germany upside

better broadband penetration

 

Could generate over $4.50/share in fcf

Value it based on fcf

Could leverage to 5x

Capitalizing on the scale of the business

Should trade at a 7.5 yield

Price target $60

Bull case $80

Jody LaNasa

Jody LaNasa is the Founder and Managing Partner of Serengeti Asset Management. Prior to launching Serengeti in 2007, Jody worked at Goldman Sachs for nine years (1997 to 2006), where he was elected a Managing Director in 2002 and a Partner in 2004. Jody headed the Multi-Strategy Investing Business (‘MSI’) within Goldman Sachs Americas’ Special Situations Group.  Jody LaNasa pitches Fortress Investment Group LLC (NYSE:FIG) and Eastman Kodak Co. (NYSE:KODK).

Jody LaNasa of Serengeti Asset Management

$1.6B in assets

Jody LaNasa on Fortress Investment Group LLC (NYSE:FIG)

64b in total AUM

$938m revenue

growing AUM by 11% a year

 

Deeply undervalued

Trades at 6x earnings

Dividend 14% yield

$5b in permanent capital

 

Price target

(assumes FIG never makes any incentive fees anymore)

Worth $10

 

Fairly valued: $12.69 (100%)

 

Kodak (KODK)

Revenue fell off a cliff and they had to restructure through bankruptcy

 

Got out of legacy businesses US consumers think of

They have a portfolio they is highly under valued

7000 patents that cost 5b over the years

 

Less than a billion in debt and unfunded pension liability (leveraged at less than 1x)

cut $200m in corporate G&A during bankruptcy

 

Exited 5 of the 11 business segments they were in

 

Businesses

Traditonal printing

Patent portfolio

Trying to figure out how to commercialize their ideas/patents

Digital printing

Growing 5% a year

 

Hidden assets

Running off desktop printers

Running off entertainment film business

$1.34/share

 

Selling business park $2.36/share in cash

Essentially monetizing $10/share in cash (investors are not giving them credit for these hidden assets)

 

market cap 766

Plus net cash (94)

Unfunded pension 224

EV 896

 

Thinks they have a couple fast growing revenue generating business

Creating touch screens 30-50% cheaper than other companies for tablets, phones, and tv’s

Starting to sell these touch screens and this could be big…

 

Price target $59 (226% upside)

**If mgmt succeeds at hitting their goals**

 

Capitalize for Kids Aaron Cowen