A number of hedge fund managers showcased their key ideas at the 2024 Son Investment Conference in New York on Wednesday. Among the stocks mentioned are e-commerce platforms, semiconductor manufacturers and European chemical companies. The event will also feature ideas from rising stars in the hedge fund industry. Son’s “idea contest winner” was also included. Here are some of the top picks mentioned:Vijay Shilpiekandula, Duquesne Family Office’s Investment Idea: ASML Son Idea Contest Winner Named:Vijay Shilpiekandula, Duquesne Family Office’s, Duquesne Family Office’s Investment Idea We introduced this as a stock idea. The Dutch semiconductor company is a “research and development powerhouse” and a “high-quality business” that looks attractive on a growth-adjusted basis compared to its peers, investors said. A potential catalyst for the future that Shilpiekandula is looking forward to is his ASML Investor Day on April 17th, where he expects management to explain opportunities in high-bandwidth memory and generative AI. Masu. “What I think is a good opportunity for investors in the market to think about now is the long-term production capacity and long-term earnings potential of this company based on the gold rush that has been created by all these memory manufacturers and the big languages. “It’s about being creative about what the models are chasing,” Shilpicandula said. ASML stock is up 29.5% this year. The company beat fourth-quarter sales and profit expectations, but said this year’s sales will be similar to 2023 sales. Jesse Cohn, Elliott Investment Management Investment Idea: Etsy E-commerce platform Etsy is an undervalued company, according to Elliott Investment Management Managing Partner Jesse Cohn. He said his company, which has more than 10% of shares outstanding, has proven to be profitable and extremely cash-generating, and has a “very good business model.” While he maintains that Etsy is a durable business, the company has lost 19.6% year-to-date due to continued macroeconomic struggles in consumer spending since the coronavirus pandemic. , and pointed out that it was significantly lower than the overall market. But activist investors say it should be an investment opportunity. Etsy “currently trades inline across the Internet, e-commerce and traditional retail without a heavy-duty, growing number of competitors,” Cohn said. “On a cash flow basis, it trades at a discount to Bath & Body Works and Gap. …The company is relatively early in the operating and monetization process.” Seth Fisher, Oasis Management Investments Idea: Kao Seth Fisher, founder and chief investment officer of Oasis Management, says there is an underappreciated acquisition opportunity for Japan’s global chemical company. Kao, which operates cosmetics brands such as Biore and Curel, has an attractive product portfolio that has yet to reach its full potential, Fisher said. This could change with more global marketing efforts, he noted. Japanese stocks have been flat since the start of the year, even as the Nikkei Stock Average rose more than 17% as Japan’s indexes hit new highs this year. “They have great technology and a lot of interesting products, but they haven’t yet been able to translate that into some kind of growth mindset,” Fisher said. “But we think it’s a Sleeping Beauty.” David Einhorn, Greenlight Capital Investment Investment Ideas: Solvay Greenlight’s David Einhorn announced Solvay as a top investment idea, and the European chemical He said the company is a market leader with an attractive valuation. “Solvay is an important chemical company that maintains its number one position in all markets,” Einhorn said. “Although these are all considered commodity businesses, they have higher margins and are much more stable than most commodity chemical businesses.” Solvay shares have fallen more than 3% since the beginning of the year. Over the past year, they have fallen more than 70%. Duquesne Family Office’s Michael Buckley Investment Idea: Natera Medical diagnostics company Natera has significant upside potential based on the strength of its oncology business, according to Duquesne Family Office’s Michael Buckley, portfolio manager. There is a possibility that there is. Natera stock is up more than 47% this year. Buckley said the company’s oncology division has the potential to detect cancer in patients earlier than CT scans, which could boost the company’s future earnings. Currently, two-thirds of the company’s revenue comes from its women’s health business. Additionally, he expects the company to reach profitability sooner than the Street currently predicts. “Not only is the company an exciting stock with tremendous growth potential, but it is also one of the few healthcare companies that can dramatically improve patient outcomes while reducing total system costs.” said. Mohamed Anjalwala, Advent Global Opportunities Investment Idea: Carpenter Technology Carpenter Technology is an undervalued business in the aerospace industry, but could play with backlogs of aircraft from Boeing and Airbus, says Advent・Mohamed Anjarwala, Managing Director of Global Opportunities, said: “We believe Carpenter is one of the best ways to address the growing backlog of aircraft as Boeing and Airbus increase the prices they charge,” Anjalwala said. Anjwala noted that Carpenter is a leading supplier of specialty alloys to the aerospace industry, a market with high barriers to entry given the stringent testing requirements for parts. The investor said Carpenter, one of just three suppliers, accounts for about 40% of the market. Additionally, the company could benefit from increased travel as global incomes rise. The managing director expects the stock could trade at $200 per share, in line with peers, or 20 times forward earnings. It currently trades at just over $70 per share, trading at a forward P/E ratio of approximately 17 times. The stock has increased 3.6% since the beginning of the year. It rose 3% on Wednesday.
