market folly

We're posting up notes from the Sohn London Investment Conference 2015.  Next up is Bo Börtemark of Carve Capital who pitched a short of Larfargeholcim and two long ideas: Sprouts Farmers Market and Yahoo.


Bo Börtemark's Sohn London Presentation 2015

Carve Capital is a long/ short equity and credit hedge fund manager that approaches equity from a bottom-up perspective.

Short Lafargeholcim.  China used more cement in the last three years than the US did in the whole Twentieth Century.  Now there is over capacity in China and the rest of the world. China is trying to export its excess capacity. China will increasingly seek to export cement to the countries where the price of cement is highest. These are the same markets that Lafargeholcim is in.


Long Sprout Farmers Market (NAS: SFM). The natural and organic food market is expected to grow in the US.


Long Yahoo (NAS: YHOO).  The core operation is valued at zero by the market. Investors have stopped believing and have given up.


Be sure to check out the rest of the Sohn London Conference presentations.