Here are Sohn’s top picks from emerging hedge fund stars, one of which could almost double | Wilnesh News
Hedge fund managers gathered in New York on Wednesday for the 2024 Sohn Investment Conference to share their best investment ideas. Thorne is one of the most anticipated hedge fund events of the year. The conference kicked off with “Next Wave Sohn,” which featured ideas from rising stars in the hedge fund industry. Here are their picks: Eric Wolff of Gumshoe Capital Management Investment philosophy: Pason Systems Energy company Pason Systems is a major supplier of EDRs, or electronic drill recorders, solutions to the oil and gas industry, according to Eric Wolff, portfolio manager at Gumshoe Capital. manage. Wolff sees 45% to 180% upside for Parsons, which he says has a 60% to 85% market share in the Western world. “Parsons provides excellent service that is difficult to replicate… We believe it is an excellent business that deserves to trade at a healthier price-to-earnings ratio than it currently trades,” Wolfe said, adding that the company’s current price-to-earnings ratio It’s oil and gas P/E ratios not software valuations. “We believe this is a near-monopoly business… even if the multiples don’t expand, based on the business calendar alone, we can achieve 18% returns over the cycle,” he added. Shares are up about 4% this year and more than 19% in the past month. Michelle Ross of StemPoint Capital Investment Thesis: Crinetics Pharmaceuticals Crinetics Pharmaceuticals is a stock that could almost double due to a surge in interest in weight-loss drugs and a growing focus on endocrine health, said Michelle Ross, chief investment officer at StemPoint Capital. times the stock. The stock has gained nearly 33% so far this year. Ross said Crinetics, which develops treatments for endocrine diseases, could tap into a potential multi-billion-dollar U.S. market opportunity as it targets treatments for Cushing’s disease and congenital adrenal hyperplasia. Endocrinology is an $8 billion market, but the cumulative market size, including the company’s future treatment targets, exceeds $200 billion, including estimates for future obesity drugs, the investor said. She sets a one-year price target on the stock of $88, implying upside potential of 92%, while her long-term price target of $339 implies upside potential of up to 665%. Ross said she expects to significantly outperform companies such as Eli Lilly and Novo Nordisk in the coming years as the “obesity market shifts from injectables to oral drugs.” Over the past three years, Crinetics has outperformed the SPDR 200% compared to the SPDR S&P Biotech ETF (XBI), she said. This year, Crinetics is up more than 31%, while XBI is up 1.8%. CRNX YTD Mountain Nikhil Daftary’s investment thesis: Alimentation Couche-Tard A Canadian global convenience store operator is a buying opportunity in an often-overlooked industry, says Nikhil Daftary, co-founder and partner at NK Capital. Daftary said Alimentation Couche-Tard is available in Canada but generates most of its profits in the United States, where it is the second-largest convenience store chain behind 7-Eleven. The investor said the company has a market capitalization of C$75 billion and has an “incredible track record of success.” In addition, Daftari expects large gas stations to be a surprising beneficiary of growing EV penetration. “We believe Couche-Tard is one of the top success stories in the public markets and is priced like a value stock,” Daftary said, adding that the company’s shares are trading at a compound annual growth rate of 18%. “We believe the company can grow earnings per share in the mid-teens for many years to come” and one day rival some of the world’s largest chains, such as Starbucks and McDonald’s. “We think Couche will one day become one of the largest retailers in the world,” he said. The stock has fallen 4.4% this year and has fallen about 11% in the past month after the company reported disappointing third-quarter earnings. Short-seller Chris Drose, founder of Bleecker Street Capital, calls food packaging company Sealed Air “a melting ice cube hiding in plain sight.” Short sellers pointed out that the company has a market capitalization of $5 billion and debt of approximately $4.8 billion. The stock fell more than 5% in midday trading. Nate Koppikar, a portfolio manager at Orso Partners, lists Globe Life as a short-term option, calling it “one of the dirtiest businesses” he’s ever encountered because the company uses brokers to sell short-term medical plans that are expensive for customers. Call it “worthless”. He expects the stock could drop 50% this year as he expects the Justice Department and Federal Trade Commission may take action against the company. The stock fell 2.8% in midday trading. Safkhet Capital founder Fahmi Quadir calls Adtalem Global Education her most confident short, noting that the company received nearly $2 billion in taxpayer-funded subsidies last year but produced “terrible student outcomes” with graduates unable to repay loan.
