Eric Andersen: Long Gartner, Forrester Research

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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

Eric Andersen Focusing on Where Others Aren’t by scribdvw

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