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).
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Also see: Jeff Smith Bullish On Yahoo, Darden, MeadWestvaco, Jamie 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**