Sohn/Hearts and Minds conference - Sydney November 11th

[Scunny Bunny]

The first Sohn conference in Australia featured 12 (local) managers pitching their ideas. Mainly global ones so may be of some interest:

 

Lanyon Asset Management - 32.HK (Cross Harbour Holdings)

Cooper Investors - Brinks Companies (BCO: NYSE)

Blackrock Australia - Fairfax Media (FXJ.AX)

Macquarie Asset Management - Chorus Group (CNU.AX)

Unisuper - Transurban (TCL.AX) - total spruik IMHO

Lizard Asset Magt (Chicago) - BIM (Turkish Aldi style retailer) (BIMAS.IS)

Wilson Asset Management - Armidale Invest Co (AIK.AX) (micro-cap)

Thorney Investments - Mesoblast (MSB.AX) (yawn)

Platinum Asset Management - 58.com (WUBA: NYSE)

Magellan Asset Management - Apple (APPL)

Caledonia - Amaya (AYA: NYSE)

Janchor Partners - Wynns Macau (1128.HK)

SHORT SALES

VGI Partners - Hanesbrands (HBI: NYSE)

Perpetual - Corporate Travel Management (CTD.AX)

Regal Funds - Postal Savings Bank of China (1658.HK)

 

Hope of some interest

 

[constala]

very interesting, thanks so much, what is the "twitter thesis" on

Wynns Macau (1128.HK) please?

[Scunny Bunny]

Wynns Macau was presented by John Ho (google him - smart dude) - this brief from my notes - all care, no responsibility. Basic story is that low loss gaming in Macau has held up whilst VIP collapsed. Capex cycle in Macau coming to a close ($50billion later!) & so much more than just gaming. Cash flow will start to crank up. Ho equated China consumer "hierarchy of need" to Maslow's similar hierarchy. 300 million Chinese can afford to go to Macau but only 25million have done so. Wynns Macau EV of $12bn (8equity+ 4debt) & Ho expects $1bn FCF in 2 years. Admire Ho but I'm too much of a vulture to pay that valuation.

[mateo999]

Thanks very much for posting this.  Much appreciated.

[Carsten_Prause]

Hi - thanks for posting. How about WUBA? Can you share your notes on it? Stock dropped substantially and looks like they will be highly profitable once they get their costs under control. Thanks!

[Scunny Bunny]

re 58.com (WUBA: NASDAQ) was presented by Kerr Neilson CEO of Platinum Asset Management (one of the two great success stories of Australian asset managers investing overseas). Kerr didn't use slides - however, you are saved from my notes and appalling understanding of Chinese portal/verticals by the fact Kerr effectively repeated the 58.com thesis laid out (page 3) in the latest Platinum Capital Limited (closed end listed fund - PMC.AX) link https://www.platinum.com.au/documents/funds/pmc/quarterly_reports/pclqtr_0916.pdf

 

[ccplz]

Wynns Macau was presented by John Ho (google him - smart dude) - this brief from my notes - all care, no responsibility. Basic story is that low loss gaming in Macau has held up whilst VIP collapsed. Capex cycle in Macau coming to a close ($50billion later!) & so much more than just gaming. Cash flow will start to crank up. Ho equated China consumer "hierarchy of need" to Maslow's similar hierarchy. 300 million Chinese can afford to go to Macau but only 25million have done so. Wynns Macau EV of $12bn (8equity+ 4debt) & Ho expects $1bn FCF in 2 years. Admire Ho but I'm too much of a vulture to pay that valuation.

 

Why Wynn and not Sands Macau?

[Carsten_Prause]

Thank you Scunny Bunny for the info on 58.com. It is very interesting to read Platinum's commentary on it. It is worth noting that a value investor Ruane Cummiff has a position in it that they significantly increased in Q3 as well.

[GrizzlyRock]

If any folks have looked at TFS Corp in Australia please DM me.