Sohn 2014: Novogratz on Brazil, ‘So Bad It’s Good’ (Barron’s)
Fortress Investments (FIG) principal Michael Novogratz takes the stage at the 19th annual Sohn Investment Conference with what he asserts is a deeply loathed investment idea: Brazil. Novogratz argued that Brazilian stocks, especially, present a compelling investing opportunity precisely because sentiment is so low. He predicted good things in store for the country if, as he told conferencegoers he believes will be the case, if President Dilma Rousseff suffers an upset loss in the country’s October presidential elections.
Abercrombie & Fitch Buries Hatchet With Hedge Fund (DailyFinance)
It’s time to move on. Abercrombie & Fitch Co. (NYSE:ANF) wisely decided it was better to switch than fight, and agreed to appoint to its board four new independent directors, a move recommended by activist investor Engaged Capital. The looming proxy battle was gearing up to be a costly distraction for the teen retailer after the hedge fund operator very publicly opposed the path management set the company on and the man they chose to lead it forward. Yet with the rapprochement, the two sides have effectively set aside their differences and are looking toward the future rather than the past. And, fortunately for CEO Michael Jeffries, it’s one that still includes him at the helm.
Jeffrey Gundlach shorts home-builders as young buyers shun mortgages (MarketWatch)
Investing giant Jeffrey Gundlach made a call to short homebuilders Monday, playing on a bearish prognosis about the housing market that speaks to a fundamental shift in the U.S. economy. Gundlach, who runs money management firm DoubleLine Capital, is often looked to as a bond specialist. But he’s been known to flirt with other types of offerings, which he did with gusto at the Ira Sohn Investment Conference. At the annual gathering of big-name investors, Gundlach said he is shorting the SPDR S&P Homebuilders ETF. In the wake of his talk, the ETF was down 1.3%.
Hedge funds turn to Asia – and airlines (Sydney Morning Herald)
New York’s hottest young hedge funds are turning their attention towards Asian equities and airlines for the next big trade. At Sohn Next Wave, held in New York’s Lincoln Centre ahead of the prestigious Sohn Investment conference, Chinese travel agent Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP), Indian telco Bharti Infratel, Japanese property company Goldstar and US airline JetBlue Airways Corporation (NASDAQ:JBLU) were the best trades touted. Jason Karp, of $1.3 billion Tourbillon Capital Partners, could hardly contain his enthusiasm for the enormous potential of Nasdaq-listed Chinese travel company Ctrip.
Chris Shumway Says Bet Against China’s Yuan, Buy Moody’s Shares (Businessweek)
Chris Shumway, head of Shumway Capital Partners LLC, recommended betting against the Chinese yuan using forward options and buying shares of Moody’s Corporation (NYSE:MCO). “They have limited options within China to deal with their slowing growth,” Shumway said at the 19th annual Sohn Investment Conference in New York. “Our view is they’re growing at 6 percent and decelerating. They either need to add stimulus or the simplest way to do it is through currency depreciation.”
