At this year’s Sohn Investment conference in London, some of the renowned hedge fund managers shared their best ideas about investing next year. According to a report from Financial News London, money managers from Lansdowne Partners, Och-Ziff Capital Management, Andurand Capital, Polygon Global Partners, Bodenholm Capital, and Pelham Capital talked about their investment ideas on technology, stocks, and oil at the conference.
Each year, the Sohn Investment conference is held by the Sohn Conference Foundation to bring investors and hedge fund managers together. The conference was called by the Wall Street Journal as “the Superbowl of investing conferences.”
Let’s take a look at the investment calls made by money managers at this year’s event:
Lansdowne Partners Selling SMC Corp
David Craigen, who runs Lansdowne Partners’ European Strategies fund, is shorting SMC Corp (TYO:6273), a Japan-based manufacturer and seller of automatic control equipment and sintered filters and various types of filtration equipment.
The money manager said that his fund is concerned about SMC’s “questionable accounts and governance issues,” its large number of subsidiaries, and the continued role of the company’s 91-year old Chairman Yoshiyuki Takada.
Despite all issues pointed out by Craigen, SMC Corp (TYO:6273)’s stock has returned 80% this year.
Go Long on Oil: Andurand Capital
Pierre Andurand, a French businessman and hedge fund manager who specializes in the oil market, is a strong believer in oil.
The investor said that crude could rise $80 a barrel in 2018, recommending investors to go long on oil.
Besides Andurand, economist Jim O’Neill, a former chairman of Goldman Sachs Asset Management, also believes that oil prices could surge to $80 next year.
50% Upside to Evry Shares: Polygon Global Partners
Reade Griffith, the founder of Polygon Global Partners, is bullish on EVRY A/S, an Oslo, Norway-based information technology company.
Griffith believes that Evry is a strong buy, having a 50% upside potential. The investor is betting on Evry on the back of a big outsourcing deal with IBM and the company’s growing dominance in the Norwegian and global financial services markets.
Italian Tire Manufacturer Pirelli Is Buy: Och-Ziff Capital Management
Adrian Croxson, who leads European equities of Och-Ziff Capital Management in London, recommended investors to go long on Italian tire manufacturer Pirelli.
The investor sees no slowdown in the global tire market in 2018, especially in the world’s largest tire market China.
In 2017-2020, Chinese automotive tire market is expected to grow by approximately 4%.
Bodenholm Capital Is Shorting German Commercial TV Station Pro7
European hedge fund Bodenholm Capital sees no value in German commercial TV station Pro7, given the popularity of online streaming platforms.
Per Johansson, the fund manager, is recommending investor to go short on Pro7.
The money manager said that online streaming services such as Netflix and Amazon Prime are damaging business at traditional media companies as young viewers are turning to online video streaming.
Johansson estimated a 30% to 40% downside in the Pro7 stock price.
Go Long on Infineon Technologies: Pelham Capital
Ross Turner, the founder of $5-billion hedge fund Pelham Capital, is bullish on German chipmaker Infineon Technologies AG (FRA:IFX).
Turner believes that Infineon Technologies will get a boost from the growth in electric and autonomous vehicles, thus recommending investors to go long on IFX.
Earlier this year, Infineon Technologies AG (FRA:IFX) announced that it will provide components for the highly-anticipated Tesla Model 3.