market folly

We're posting up notes from the Ira Sohn Conference 2013 in New York.  Next up is a summary of the presentation from Clifton Robbins of Blue Harbour Group.  He presented the long case for CACI (CACI), which he owns 93% of and his second pick was a new position in Akamai (AKAM).


Long CACI (CACI)

Robbins expects a lot of M&A due to cash on balance sheets.  Two longs. CACI. Government Services Contractor. Intelligence, Cybersecurity, etc. Was originally a software company. Strong FCFs. Trades at only 7x EBITDA, valuation implies 30-40% upside.


Long Akamai (AKAM)

He says it's a unique business at crossroads of megatrends. Say it can do better balance sheet optimization, no debt $1B in cash. Says stock up only 18%, while growing faster than comps. Disputes margin pressure problems. Argues stock from today's price of $45 is undervalued by $15. All the cash is in the US. Says they can do accretive acquisitions.


Check out the rest of the hedge fund presentations from the event: notes from Ira Sohn Conference 2013.