We're posting up notes from the 2013 Value Investing Congress in New York. Next up is Alex Roepers of Atlantic Investment Management and his presentation was called: "Insights from 25 Years of Constructive Shareholder Activism." He also pitched 5 new ideas.
Alex Roepers' Value Investing Congress Presentation
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19.2% compounded net of
fees return over last 25 years.
Tips: Define your universe. Stay
in your area of competence. Build conviction by doing your homework. Wait for
opportunity to arise, stalk stock until then. Don't be greedy: scale out as you
reach your valuation. Don't use leverage. Concentrate funds on your highest
conviction ideas. (They do best 6 or 7 ideas). Be honest and transparent with
your investors.
Last year’s ideas:
Energizer (ENR): Sold with 29% profit
Rockwood (ROC): Still own up 39%
Clariant (CLN.VX): Still own, sold
some, up 42%
FL Smidth (FLS.DC): Sold. Lost 5%
Joy Global (JOY): Sold. Only up 8%
Roepers' Five New Ideas
Baker Hughes (BHI): 43%
upside. Third largest energy services. BJ services acquisition with zero
margins. Activist to improve margins. $71 PT on 12x 2014 EBIT.
Faurecia (EO.FP): Auto parts. Trading at 20c on the dollar. Deleveraging story. 50%
owned by troubled Fiat. 41% upside to pt.
Itochu
Techno Solutions (4739.JP): IT services. Domestic company benefiting from
Japanese financial firms recovery.
Lanxess (LXS.GY)
German polymer company. Rubber used in tires. Benefits from replacement cycle
that has been delayed.
Harman (HAR): Speakers. Mainly in cars. Jbl. Professional segment is arenas, concerts, etc. Infotainment 9 of top 15 car companies in the world.
Be sure to check out the other presentations from the New York VIC here.
