Here are the top investing ideas from Sohn’s conference, including e-commerce businesses | Wilnesh News
The 2024 Sohn Investment Conference took place in New York on Wednesday, and a number of hedge fund managers highlighted their top ideas. Stocks mentioned include an e-commerce platform, a semiconductor company and a European chemicals company. The event also showcased the ideas of rising stars in the hedge fund industry. It also includes Sohn “Idea Contest Winners.” Here are some of the top picks mentioned: Vijay Shilpiekandula, Duquesne Family Office Investment Idea: ASML Duquesne Family Office’s Vijay Shilpiekandula was named the Sohn Idea Contest winner, citing ASML as his top stock idea. The Dutch semiconductor company is an “R&D powerhouse” and a “high-quality business” that looks attractive on a growth-adjusted basis compared with peers, the investor said. The potential future catalyst he’s looking forward to is ASML’s Investor Day on April 17, where Shilpiekandula expects management to comment on opportunities in high-bandwidth memory and generative artificial intelligence. “I find that a good opportunity for investors in the market to consider right now is to think creatively about the long-term capabilities and long-term earnings potential of this company, based on all these memory makers and the gold rush of big languages. Models are chasing it,” said Shilpiekandula. ASML shares are up 29.5% this year. The company beat fourth-quarter revenue and profit expectations, but said revenue this year will be the same as in 2023. Jesse Cohn, Elliott Investment Management Investment thesis: E-commerce platform Etsy is an undervalued company, says Elliott Investments Managing Partner Jesse Cohn ·Cohen. His company, which owns more than 10% of outstanding shares, said it’s a “very good business model” because it has proven to be highly profitable and extremely cash-generating. While he insisted Etsy is a durable business, he noted that Etsy has significantly underperformed the broader market as it has lost 19.6% year-to-date as consumer spending continues to face macroeconomic difficulties since the COVID-19 pandemic. However, the activist investor said it should be an investment opportunity. Cohen said Etsy is “currently experiencing consistent load, but no growth, across internet, e-commerce and traditional retail.” “From a cash flow perspective, it’s trading at a lower price than Bath & Body Works, Gap… It is still in the relatively early stages of its operations and monetization process.” Seth Fischer, Oasis Management Investment philosophy: Kao There is an undervalued buying opportunity in Japanese global chemicals company Kao, according to Seth Fischer, founder and chief information officer of Oasis Management . Fisher said Kao, the company behind Biore, Curel and other cosmetics brands, has an attractive product portfolio but has yet to reach its full potential. He pointed out that this situation can be changed through more global marketing measures. Japanese stocks are flat for the year, despite the Nikkei 225 hitting a record high this year, up more than 17%. “They have great technology, a lot of interesting products, but they haven’t translated it into any kind of growth mindset,” Fisher said. “But we think this is Sleeping Beauty.” David Einhorn, Greenlight Capital Investment Investment thesis: Solvay Greenlight’s David Einhorn lists Solvay as his top investment thesis, calling the European chemicals company a market leader. Valuation is attractive. “Solvay is an important chemical company with a No. 1 position in all of its markets,” Einhorn said. “While all of these are considered commodity businesses, they have higher margins, And it’s more stable than most bulk chemicals businesses.” Solvay’s shares are down more than 3% year to date. They have fallen by more than 70% in the past year. Duquesne Family Office’s Michael Buckley Investment thesis: Medical diagnostics company Natera Natera The strength of its oncology business may have huge upside potential. Natera shares are up more than 47% this year. Buckley said the company’s oncology unit has the potential to detect cancer in patients earlier than CT scans, which could drive future revenue growth. Currently, two-thirds of the company’s revenue comes from women’s health, he said. What’s more, he expects the company to be able to turn a profit sooner than Wall Street currently expects. “Not only is it an exciting stock with incredible growth potential, but it is one of the few healthcare companies that can significantly improve patient outcomes while reducing total system costs,” he said. Director of Advent Global Opportunities Advent Global Opportunities managing director Mohammed Anjarwala said Carpenter Technology is an undervalued business in the aerospace industry and can also tap into the backlog of aircraft from Boeing and Airbus. “We believe Carpenter is one of the best ways to address the backlog of Boeing and Airbus aircraft as Boeing and Airbus continue to increase billing rates,” Anjarwala said. Anjarwala noted that Carpenter is an aerospace company A leading supplier of specialty alloys to the industry, barriers to entry in this market are high due to stringent testing requirements for parts. The investor said Carpenter is one of only three suppliers and has cornered about 40% of the market. What’s more, the company could benefit from growth in the travel industry as global revenue increases. The managing director expects the stock could trade at $200 a share, or 20 times forward earnings, roughly in line with peers. Currently, the company trades at just over $70 per share and has a forward price-to-earnings ratio of about 17 times. The stock is up 3.6% this year. Shares rose 3% on Wednesday.
