Porche Among Hedge Fund Top Pics

//Porche Among Hedge Fund Top Pics

Porche Among Hedge Fund Top Pics

Hedge fund titans picked holding company Porche and News Corp as two stocks that were being unfairly marked down by the market.

Top hedge fund managers picked stocks at Ira Sohn Conference, being held for the first time in London, attracted such speakers Chris Cooper-Hohn, the media-shy founder of The Children’s Investment Fund Management (TCI), Kynikos Associates founder Jim Chanos, Egerton Capital’s John Armitage, and Muddy Waters’ Carson Black.
Cooper-Hohn named Porsche and News Corp (NWSA.O) as two stocks that were being unfairly marked down by the market.
The trader, well known for taking activist stakes in companies, said that Porsche (PSHG_p.DE) trades at a 40 percent discount to net asset value, while Volkswagen, of which it owns nearly one-third, is also cheap.
“VW is on five times earnings. With Porsche you get it at a p/e (price to earnings ratio) of three,” he said. “It’s a discount on a discount.”
He also said that legal claims by hedge funds against Porsche are likely to be dismissed or settled for around 1 billion euros (804 million pounds). Net claims amount to around 5 billion euros, he said.
Investors accuse Porsche SE of concealing a move in 2008 to acquire VW, and of covertly amassing a majority interest in Europe’s biggest carmaker.
News CorpĀ  was favoured despite market concerns over a telephone hacking scandal that prompted it to close Britain’s News of the World newspaper.
“People think it’s a cyclical business with lots of advertising. It has lots of steady fees,” he said. “It’s a business with massive pricing power. It shouldn’t be trading at four times EBIT (earnings before interest and taxes).”
Egerton Chief Investment Officer John Armitage named News Corp, Samsung, Apple, Richemont and Volkswagen as his favorite positions.

2012-11-25T12:39:39+00:00

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