We are covering the 2015 Harbor Investment Conference. The embargo ended at 4PM EST so we are posting our coverage from the event. Below are very very informal notes from Larry Robbins of Glenview Capital Management and Steve Errico of Locusts Wood Capital presentation.
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Larry Robbins of Glenview Capital Management
Larry Robbins speaking a mile a minute. Spoke about the market in general. Thinks that we are going to be okay. Business as usual looking for value related companies. Talked about his positions in Monsanto, Flextronics International and Thermo Fisher Scientific. Mentioned McDonald’s also noting that even the largest cap companies aren’t immune to activists. There is room to elect new people to the board.
Monsanto. They have big moat. Would take 20 years to infiltrate their position.
Flextronics. They and TMO both supply the industry who are taking the riskier shots. FLEX is buying back stock he likes that
Actavis and Endo International. Thinks it will earn $22 in 16 and $25 in 17.
Mentioned the crazy move in treasuries as of late. On a percent basis it’s been a wild 9 days.
See Larry Robbins 2014 letter to investors for more on this topic.
Todd Sullivan spoke about Howard Hughes. Said that the correlation to oil prices are overblown. It’s a good buy at 130. Should go to 175. They have other properties that will carry Houston said that a liberal jobs loss number in the Houston area based on oil related layoffs would number 40k. A small percentage of Houston’s total workforce of nearly 3 million. Ackman chimes in that he will never sell all his shares of HHC.
Steve Errico of Locusts Wood Capital
Following last year’s footprint mentioned NorthStar Asset Management. A NRF spin out. NorthStar Asset Management is underfollowed it is part of the general partner model. They are growing assets and buying other management companies thinks it is a$28.6 stock
Liberty Media-returning to the mothership. Target of $43.5
They are running the cleanest balance sheet in a while after spinning off a few things. His big attraction to the name is its 57% stake in siri at current price you are getting sir I at 2.95. He compares it to DIRECTV. Called Sirius creeping LBO Malone has said it will be a stand alone company.
Lastly he mentions a chicken way to play oil. Tesoro Logistics and QEP Midstream Partners. Tesoro Logistics owns the pipelines that supply Tesoro. Price of that oils is somewhat irrelevant. And these have really come down. Yelp has a tender for QEP Midstream Partners they think it gets sweetened.
Stay tuned for more including Ray Dalio and Bill Ackman.