Tilson On Einhorn’s CLB Short “so compelling and blindingly obvious that I immediately put the position on”

Excerpted from Whitney Tilson‘s email to investors – see our Sohn Coverage here

I attended the always-excellent Ira Sohn conference on Monday and, as often happens, Bill Ackman and David Einhorn stole the show with two outstanding, incredibly-well-researched ideas, long Howard Hughes (which has been one of my largest positions since it was spun out of GGP when it emerged from bankruptcy after the credit crisis) and short Core Laboratories (CLB), respectively.

 

What can past market crashes teach us about the current one?

The markets have largely recovered since the March selloff, but most would agree we're not out of the woods yet. The COVID-19 pandemic isn't close to being over, so it seems that volatility is here to stay, at least until the pandemic becomes less severe. Q2 2020 hedge fund letters, conferences and more At the Read More


They have posted their presentations here:

 

If you’re interested in learning more about HHC (and seeing the incredible development underway at South Street Seaport), the company is hosting its first investor day there a week from today, Wed. 5/17 from 8:00am to 1:30pm. Email Tracey.Wynn@howardhughes.com to register. I hope to see you there.

 

As for CLB, it doesn’t happen very often – maybe once every two years – but sometimes I see (at a conference) or read (on something like ValueInvestorsClub) an investment thesis that is so compelling and blindingly obvious that I immediately put the position on – which is what I did on Monday just after Einhorn’s presentation. Check it out for yourself – it’s that good. A highly cyclical company masquerading as a secular growth story – trading at nearly 9x REVENUES!

 

Below is a summary of all of the ideas presented, articles about the conference, and how some of last year’s picks have fared.

 

2) Speaking of great conferences, I hope you’ll join me at the 14th International Annual Value Investing Seminar, which will take place on July 13-14 in the beautiful seaside city of Trani, Italy (the closest airport is Bari (BRI)). For more information and to register, go to: www.valueinvestingseminar.it/content_/index.asp

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http://blogs.marketwatch.com/thetell/2017/05/08/sohn-hedge-fund-conference-live-blog-ackman-einhorn-gundlach-offer-top-picks/

 

https://www.forbes.com/sites/antoinegara/2017/05/08/the-best-hedge-fund-trades-from-the-2017-ira-sohn-investment-conference/#1294e60b4b2e

 

http://www.wsj.com/livecoverage/ira-sohn-investment-conference-2017

http://fortune.com/2017/05/08/sohn-conference-hedge-fund-stock-picks/

 

  1. David Einhorn, Greenlight Capital – shorting oil services company Core Laboratories
  2. Keith Meister, Corvex Management- bullish on telecom provider CenturyLink
  3. Debra Fine, Fine Capital Partners- bullish on  Canada-based content producer DHX Media
  4. Bill Ackman – bullish on real estate company Howard Hughes
  5. Brad Gerstner, Altimeter Capital – bullish on United Airlines
  6. Josh Resnick, Jericho Capital Asset Management- shorting telecom company Frontier Communications
  7. Larry Robbins, Glenview Capital Management- bullish on  DXC Technology, which formed when Hewlett Packard Enterprises (HPE, +0.32%)spun off and merged its services unit with the firm formerly known as CSC
  8. Jeff Gundlach-  Passive investing is a Myth,’ Short the SPY; Go Long EEM
  9. Palihapitiya: Buy Tesla’s Convertible Bonds, Not Its Stock

One Year Later: A Look At The 2016 Ira Sohn Conference Picks

https://www.bloomberg.com/news/articles/2016-05-02/how-the-hedge-fund-picks-from-last-year-s-sohn-conference-are-performing

 

https://www.benzinga.com/analyst-ratings/analyst-color/17/05/9419537/one-year-later-a-look-at-the-2016-ira-sohn-conference-pi

The Sohn’s Investment Conference brings together some of Wall Street’s most notable hedge fund titans in support of a good cause. The event has raised more than $75 million globally over 20 years to fight pediatric cancer and other childhood diseases.

As part of the event, hedge fund titans present a compelling trading idea or outlook. Ahead of the 2017 event, which kicks off on MondayBloomberg took a look back at some of the ideas presented in 2016.

Chanos: Short MTN Group

James Chanos of Kynikos Associates suggested shorting MTN Group Ltd (ADR) MTNOY 0.7%, Africa’s largest mobile phone company. According to Chanos, MTN Group’s business model is overly reliant on its two biggest markets, Nigeria and South Africa, for sales.

MTN’s ADR receipts did underperform the market over the past year and is higher by less than 1 percent.