Eric Andersen founded Western Standard in 2008 after working at the Blackstone Group, J.P. Morgan Partners, and Ivory Investment Management. Western Standard’s approach to analyzing long-term investment opportunities is research intensive and focused on downside risk.
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Eric Andersen spoke at the 9th Annual Value Investing Congress, also see Whitney Tilson Follows Up Says K12 ‘VERY High Conviction Short’. Below are notes from his presentation.
Highlights from Eric Andersen’s presentation
Long/short fund: 40 long 50 shorts
Idea 1: Forrester Research, Inc. (NASDAQ:FORR)
Net cash balance sheet good FCF
Technology research
70% recurring revenue
60% inc margins
Comp is Gartner Inc (NYSE:IT)
$12B total market two player at 17% market share. 10% plus growth. Cannot hire fast enough.
Recent issues
1. Leadership changes
2. Client delivery changes
3. Sells compensation changes
Last year 16% buyback of shares
Fair value: $48. 36% upside
Yield 2%
Expects EPS growth of 30% in 2015-16
Idea 2: OFS Capital Corp (NASDAQ:OFS)
Busted IPO.
11% yield.
87% of BV.
Earnings to double in 2 years.
CEO owns 10%.
Risks: execution risk, interest rate risk, dilution risk.
3. Hart DC 10% FCF yield. 50% upside. Egg packaging
