We're posting up notes from the Capitalize For Kids Sohn Canada conference that just took place. Next up is Jacob Doft of Highline Capital who pitched long Intercontinental Exchange (ICE).
Jacob Doft's Sohn Canada Presentation
Runs a $2.5B firm with an equity L/S mandate. Started the firm when he was 25 years old and focuses on companies undergoing fundamental/industry change. The firm has 30 employees and was founded in 1995.
Pitched LONG Intercontinental Exchange (ICE), a trading exchange where 40% of revs come from non-transaction recurring revenue, selling services like data and access. With regards to trading, 15% of revenues are from Interest rates futures. All exchanges are leveraged to volumes and this one is no different. Potential catalysts include LIBOR opportunity, OTC clearing opportunity, cost cuts, selective pricing. Hugh upside if volume gets back to normal level – we’ll likely need to see risk-free rate increase. Thinks Jeff Sprecher is a great CEO and ready to lead the business through the upcoming predicted change. Valuation regarding different scenarios; flat volume — 30% upside, up volume - 50% ; using 2016 ICE consensus 15.2x EPS; Recovery assumption case 11.2x.
Be sure to check out the rest of the presentations from Capitalize For Kids Sohn Canada here.
Tuesday, October 28, 2014
Jacob Doft's Presentation on Intercontinental Exchange: Capitalize For Kids Sohn Canada
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