The SALT Conference is one of the most popular conferences about macro trends, investment picks and what’s going on with the world. More than 1800 leaders gather there every year from 40+ countries. This year some of the best hedge fund managers there are: Leon Cooperman, John Burbank, Kyle Bass, Jim Chanos and Michael Karsch.
The Topic is: “Moving Markets: Top Stock Picks from Leading Investment Managers” with moderator: Omeed Malik
Leon Cooperman is positive about stock returns in 2015. He sees 7-10% return. He forecasts $125 eps for the S&P500. He shared also that he see higher interest rates but more earnings growth and believes the market is fairly valued. He also stated that its difficult to predict geopolitical events. We believe its because they most often than not get resolved at closed doors. He thinks the peak on the market will be 30 months after the first hike. So he thinks there is still more time even though the big market returns are behind us. The 10 year bond should go to 4% and because of that bonds are not attractive.
Leon Cooperman – Stock picks are: (GOOGL), (PCLN), (GULTU), (ACT), (AER), (C), (DOW), (GM)
John Burbank – Passport Capital
John is long NCB AB, a Saudi Arabian bank.
“The banking giant you’ve never heard of in the country you’re too scared to invest in.”
Deposits don’t pay interest rate and that’s why the bank is in good position when interest rates rise. So it seems he is another bonds pessimist and expect same as Leon that rates will rise. He thinks that outsiders are going to be able to invest in Saudi and by 2017 90% of investors will own some part of the economy. 11-12% of his fund’s assets are invested in Saudi Arabia.
“All the risks are already known in Saudi.”
Long Perrigo (PRGO, Teva and Mylan (NASDAQ:MYL). He believes Thinks (ABT) will buy (PRGO). The pharmaceutical patent world is crazy and Hayman is short activist there. So far Kyle filed 13 challenges against more than sixth drugs.
Jim Chanos is short Royal Dutch Shell (NYSE:RDS.A) which is his biggest short bet. He sees big oil firms having negative cash flow and they increase debt to fill it. But if interest rates rise that will be problematic. Big 5 production declined 6% since 2010. The annual dividends and buybacks are not sustainable … The dream of Shell (NYSE:RDS.A) + BG (LON:BG) is not possible. He is not positive on LNG and believe Petrobras (NYSE:PBR) is corrupt firm that pay firms that aren’t supposed to get money.
He is long Nos SGPS SA (NOS), a big cable firm in Portugal. He thinks its a gem with solid fundamentals, better competitive player and has a tons of free cash flow. His target arget price is 12.94 for a 100% upside . Downside protection – its is value pick as it trades at 6.5% normalized 2015 FCF Yield
— SALTConference (@SALTConference) May 8, 2015
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