market folly

Ricky Sandler, founder of hedge fund Eminence Capital, was recently interviewed on Anthony Scaramucci's rebooted show Wall Street Week.

Eminence manages $6.5 billion now and has been running for 17 years.  Sandler focuses on "quality value," looking for quality businesses but trading at discount prices.  He likes the intersection of growth and value, focusing on a "growth at a reasonable price" approach.

He likes Michael Kors (KORS) and notes it was a momentum stock that experienced a deceleration and he thinks it's a terrific brand that has opportunity for international expansion, trading at under at 10x PE.

Sandler also touched on eBay (EBAY), which recently split off its payments arm PayPal (PYPL).  The standalone EBAY is now purely an online marketplace.  Sandler says PYPL trades about for 20x earnings when you back out the cash, and it has 20% growth "for as far as the eye can see."

The Eminence founder also talked about gaming plays Zynga (ZNGA), Activision (ATVI), Take Two Interactive (TTW), and Ubisoft (UBI.PA).

Eminence is also short Regal Cinemas (RGC).

We've highlighted some other portfolio activity from Eminence here.

Embedded below is the video of Ricky Sandler's Wall Street Week interview:



For more, be sure to check out Mario Gabelli's interview on Wall Street Week from last week too.