Jason Karp – Tourbillion Capital Partners – long on SunOpta On Millenials

ValueWalk is at the NYSSA  Annual Ben Graham Conference today. Below are notes from the speakers. Check back as we will have a lot more in the coming hours. These notes are from one of our favorite hedge fund managers: Jason Karp – Tourbillion Capital Partners on his best ideas he pitched a long thesis for SunOpta

Rupal Bhansali – informal notes  from his pitch at the Annual Ben Graham Conference below

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Millennials - more health conscious and less concerned about price; more quality conscious and less brand conscious

-peak spending is between ages of 40-50 and in fifteen years peak spending;
-organic is 12% growth over last ten years; expect share of natural and organic to go up dramatically; rise of in home and carried from home;
-huge shift from generic to private label but quality has gone up
-pitching long on SunOpta (STKL); largest source of organic ingredients; they make private lable organic products;
-13 D filer and oak tree took 11% stake in the company;  massive insider buying
-at nadir they were doing .5 billion of revenue on 1% margin versus competitors at 8% margin;
-expect market to grow 3x
-expects ebitda to double; incremental margin is 25%;
-expects to go from $80mm in ebitda in 2017 to 200mm in ebitda in 2020
-50% of shares locked up

Annual Ben Graham Conference- other speakers

Thomas Russo
-like family controlled b/c sometimes trade at discount and usually family controlled companies generate lots of cash which allows families to hang onto them

Charlie Munger: Invert And Use “Disconfirming Evidence”

Charlie MungerCharlie Munger is considered to be one of the best investors and thinkers alive today. His thoughts and statements on investment research, investment psychology, and general rational behavior are often incredibly insightful. Anyone can learn something from this billionaire investor and philosopher. Q2 2020 hedge fund letters, conferences and more If you’re looking for value Read More


-you need to avoid agency costs among the management;

Chris Davis
- a good farmer farms for his children; sometimes long term vision
-Investing is the art of the specific...nav gap is not necessarily good if there are major problems

Aswath Damodaran - Professor of Finance at NYU

-Valuation is not a science but a craft; you learn valuation by doing but not by reading about it in books;
-85% of all intangible assets is goodwill which is a plug asset;
-balance sheet records the past and very rule driven but a valuation mindset is forward looking
-we can't think about value as assets in place
-simple way to check valuation is to see if assumptions of growth, risk, and reinvestment make sense
-need to separate words price and value; value is cash flows, growth, and risk; price is supply and demand and who knows what that is; we need to stop using the two terms interchangeably
-you need faith that price will reflect your value; proof means you can't prove it

Annual Ben Graham Conference  Ben Graham