The 4th Annual Delivering Alpha Conference will start tomorrow, July 16, in New York City, featuring various prominent figures from the finance world. The lineup includes Secretary of the Treasury Jack Lew, who will be interviewed by CNBC’s Jim Cramer; Ken Griffin; Carl Icahn; John Paulson; Larry Robbins; Michael Novogratz; and, Jeffrey Smith; amongst others. However, the one that woke the interest of this writer is Leon Cooperman of Omega Advisors, who made a widely-reminded recommendations, like that for Apple Inc. (NASDAQ:AAPL)’s stock back in the 2011 edition; the one for QUALCOMM, Inc. (NASDAQ:QCOM), in 2013; and the one for SandRidge Energy Inc. (NYSE:SD), also last year. Check out a list of returns for recommendations made at Delivering Alpha Conference here.
Unlike other money-managers that present a few stock pitches at Delivering Alpha Conference, Mr. Cooperman usually presents equity portfolios with ten stocks from different sectors of the market. His picks from last year outperformed the S&P 500 (INDEXSP:.INX), which delivered about 17% over the past year, so you might figure why his pitches for this year are anxiously expected.
In an Investors Letter sent out in late-April, Mr. Cooperman recommended a few stocks, some of which he might endorse –once again- in the Delivering Alpha Conference, impacting on their stock price going forward. So let’s take a look at Mr. Cooperman’s picks in order to elucidate if any of them deserve further research and could be considered as attractive investment options.
The hedge fund manager recommended the following stocks:
- Actavis plc (NYSE:ACT), in account of its “diverse portfolio of long-duration assets (…); its merger with Warner-Chilcott last year and the recently announced merger with Forest Labs (…);” and a highly compelling valuation (Investors Letter). Actavis plc (NYSE:ACT)’s stock price rose about 7.5% since the letter was released.
- Citigroup Inc (NYSE:C), which has returned 1.9% since late-April. The reason behind the endorsement is Citigroup Inc (NYSE:C)’s attractive risk-reward profile. Omega Advisors expects that Citigroup Inc (NYSE:C) “can trade to $60, the equivalent of tangible book value, by year-end 2014 as management continues to show progress on restructuring plans and while emerging market credit statistics remain benign” (Investors Letter).
- France-based Kering (EPA:KER), mainly due to its appealing valuation and expected growth driven by Gucci. The stock has already returned 4% since the letter was sent out.
- Time Warner Cable Inc (NYSE:TWC), up 6.8% since the letter. Mr. Cooperman believes that the acquisition of its larger peer, Comcast Corporation (NASDAQ:CMCSA), will bode well for Time Warner Cable Inc (NYSE:TWC)’s future.
- Tribune Company (OTCMKTS:TRBAA), an $8.2 billion market cap media and entertainment company that carries several growth catalyst including the upcoming spinoff of its newspaper business, recent TV stations purchases, and stakes in a cable TV network and two online classified advertising companies, amongst others.
Disclosure: Javier Hasse holds no position in any stocks or funds mentioned