Hedge Fund Tips for 2018: Oil at $80, No End to Technology Boom
The past versus the future was a key theme of this year’s Sohn London conference.
(Bloomberg) -- The past versus the future was a key theme of this year’s Sohn London conference, an annual get-together for the biggest names in the global hedge-fund industry.
Money managers’ investment calls ranged from shorting traditional media companies such as ProSiebenSat.1 Media SE to backing a maker of components for the next Tesla Inc. electric car. The ailing cinema industry was the target of a short recommendation, while there was support for Norwegian information-technology company Evry AS.
Below are some of the long and short investment ideas raised at the event at the Marriott Hotel in London on Thursday.
LONGS:
- Pelham Capital’s Ross Turner said Infineon Technologies would get a boost from the growth in electric and self-driving cars
- The chipmaker has sold chips to Elon Musk’s car company since its first model and announced earlier this year that it would also provide components for the highly anticipated Tesla Model 3
- Polygon Global Partners’ Reade Griffith foresaw 50 percent upside to Evry’s shares and said its margins should significantly increase
- Och-Ziff Capital’s Adrian Croxson recommended going long on Pirelli & C SpA stock, saying the tire maker was a predictable growth story because of its pricing power and ongoing demand for its products
- Algebris Investments’ Davide Serra backed the stock of Banco Santander SA, which he called a best-in-class dealmaker that’s able to achieve better synergies and profits
SHORTS:
- Lansdowne Partners’ David Craigen said he’s shorting Japan’s SMC Corp., expressing concern about the industrial company’s margins, its large number of subsidiaries and even the advanced age of 91-year-old Chairman Yoshiyuki Takada
- An email to SMC seeking comment wasn’t immediately returned outside of office hours
- Bodenholm Capital’s Per Johansson said he’s shorting ProSieben stock as the company loses advertising market share. He estimated a 30 percent to 40 percent downside in the stock price, based on cash flow. The company’s shares fell as much as 2.4 percent on Thursday
- A ProSieben spokesman said the company was following a proven growth strategy and that investors would get more information about its plans next week
- Westray Capital’s Selvan Masil said he’s shorting Cineworld Group Plc, calling its U.K. expansion plans a “flawed strategy”; a spokesman for the company had no immediate comment
- Away from the corporate calls, oil trader Pierre Andurand said crude could rise to $80 a barrel next year without OPEC extending its production cuts, and called U.S. shale gas a “money-losing business”
To contact the reporters on this story: Nishant Kumar in London at nkumar173@bloomberg.net, Suzy Waite in London at swaite8@bloomberg.net, Kasper Viita in London at kviita1@bloomberg.net.
To contact the editors responsible for this story: Neil Callanan at ncallanan@bloomberg.net, Paul Armstrong
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