Delivering Alpha

810 Words Apr 17th, 2015 4 Pages
Organized by CNBC and Institutional Investor Forums for the third year in a row, the Delivering Alpha Conference did not disappoint. World hedge fund titans or more commonly known on CNBC as “Masters of the Universe” descended at the Pierre Hotel in New York City on July 17. Well-known hedge fund managers such as Carl Icahn, John Paulson, Nelson Peltz, Leon Cooperman and James Chanos, just to name a few, divulged their sought after stock picks along with solid reasoning and what lies ahead for stock and bond markets.

The opening remarks by Treasury secretary Jacob J. Lew provided his views on the current situation of the U.S. economy and regulation post the 2008 crisis. Perry Partners CEO Richard Perry suggested that Europe is 2-3
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While Chris Hohn, Founder of the Children’s Investment Fund, suggested buying EADS (Airbus) which will likely double in price over the next two to three years, as well as buying Porsche now gets an investor in at a 30% discount whereas Volkswagen will double in two years, and Aurizon (Australian railroad) will likely double in the next three years due to its more focused approach on profits.

Legendary short seller Jim Chanos, Founder of Kynikos Associates the largest exclusive short seller in the world, presented his views on why Caterpillar, due to accounting issues and the lack of growth, is a short as well as his older short HP is still in place. Mark Kingdon, President of Kingdon Capital Management, suggested going long the following Japanese stocks with low PE ratios (Mazda, Fuji Heavy (Subaru) and Toyota as well as a pharmaceutical firm called Aegerion will have good returns over the next 12-18 months. When it comes to Powering America the panel suggested that natural gas is cheaper and investors should include natural resources in a portfolio for protection against an inflationary environment with a panelist suggesting a long position in Whiting Petroleum. Activist investor Nelson Peltz was asked about his long position in DuPont and did not comment, but discussed his stakes in Pepsico and Mondelez and suggested two scenarios for Pepsico to follow.

During the luncheon speech John Paulson suggested the best investment now is buying a

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