Members of the 360Private Investment Committee attended the Sohn Hearts & Minds Investment Leaders Conference earlier this month in Sydney. The conference has been running for 19 years in the United States and this year marked the first in Australia.
It was a unique opportunity to gather distinguished global and local investment professionals to share their expertise and exclusive investment ideas. Importantly, 100% of all funds raised through the conference went towards medical research charities.
Some of the ideas presented by the guest speakers were:
David Prescott - Lanyon Asset Management
Cross Harbour (Holdings) is a Hong Kong listed infrastructure-focused investment company. It has net cash and among other investments, owns a 50% ownership stake in the Western Harbour Tunnel Company (WHT). The 50% interest in WHT is entering the highly cash generative phase of Toll road concessions. In David's opinion, the stock is trading at a large discount to his sum of the parts valuation and a possible catalyst (such as a special dividend) could lead to a re-rating.
Madeleine Beaumont - BlackRock Asset Management
Fairfax owns Domain, which has had sales growth over 33%pa for the last three years and is now ranked second in real estate advertising. Domain is Fairfax's key asset and values it at $2.2b. With Fairfax's market cap being approximately $1.8b, they estimate the market is valuing the rest of the business at negative $400m.
Peter Cooper - Cooper Investors
Brinks is a transport company with a focus on security and carrying cash and bullion. There has been a lost decade of board incompetence and poor management but now, under the experienced stewardship of CEO Doug Pertz, there is the potential for a major turnaround.
Other ideas in brief included:
Hamish Douglas - Magellan Financial Group
John Pearce - UniSuper
Leah Zell - Lizard Asset Management
BIM (Turkish retail business)
Kerr Neilson - Platinum Asset Management
58.com (Nasdaq-listed business Wuba - online merchant in China)
Alex Waislitz - Thorney Investment Group
Patrick Hodgens - Macquarie Group
Geoff Wilson - Wilson Asset Management
Armidale Investment Company