Jeffrey Gundlach’s Ira Sohn Presentation 2013: Short Chipotle Mexican Grill, Inc. (CMG) & Other Insights

Page 1 of 31

Earlier this month, on May 8th in New York, one of the greatest events in the investment world was held: the Sohn Conference. The conference featured some of the biggest Wall Street investors, who famously shared their perceptions and strategies about their favorite (or least favorite) stocks. Bill Ackman, David Einhorn and the so-called “bond guru” Jeffrey Gundlach, were just a few of the names present at this conference. The latter manages DoubleLine Capital and originally became famous after forecasting the path of interest rates. Recently Gundlach returned to Apple, after behaving bearishly last year.

Gundlach gave a very interesting presentation at Sohn about Quantitative Easing, the Fed’s actions, and the enormous debt accumulated by the American government. The presentation, titled “Investment Cubism 2013,” presented the topics in the context of Gundlach’s investment sentiment.

Chipotle Mexican Grill, Inc. (NYSE:CMG)Among others, the manager of DoubleLine said that he is fond of the shorting Chipotle Mexican Grill, Inc. (NYSE:CMG). Mexican food restaurants operator Chipotle Mexican Grill, Inc. (NYSE:CMG) is trading at around $373 and has a year-to-date return of above 25%, sporting a P/E above 40, which means that the stock still has some value.

However it is interesting to mention, that last year, David Einhorn at a conference also mentioned Chipotle Mexican Grill, Inc. (NYSE:CMG) as one of his short ideas. Chipotle Mexican Grill, Inc. (NYSE:CMG), in Einhorn and Gundlach’s opinion, is too exposed to competition. Gundlach even said about the company, “All you need to compete with CMG’s core business is a taco truck.”

Aside from advising that investors be wary of bank deposits and gold, Gundlach also mentioned he was bearish on insurance companies and French bonds, while he’s long on home price advancements.

We have gathered the presentation made by Gundalch at the Sohn Investment Conference comprised in 30 slides, which feature the points outlined by Gundlach.

See the slides on the following pages:

Page 1 of 31