Over the past several months, FactSet has partnered with SumZero on the FactSet Top Idea Tournament, a full-year contest open exclusively to research professionals working at hedge funds, mutual funds, and private equity funds. Details of the tournament, including judges, prizes, and eligibility, were described in an earlier article.
The most recent contest in the series focused on the theme of Best Large Cap, and, like the rest of the tournament, showcased extremely impressive investment research. Please join us in congratulating the winners.
Short on Royal Caribbean Cruises Ltd (RCL:US)
Summary: RCL valuation is at an all time high. Investors value RCL on Px/Fwd EPS when it has neg. cumulative FCF since inception. Shares should trade below BV of invested capital even @ 10% ROIC.
Mr. Cocke is the Founder/Managing Partner of Voss Capital LLC and has more than seven years of direct public market investment experience. The Voss Value Fund employs a long-short equity strategy focused primarily on domestic small and micro caps. It aims to make investors money by capitalizing on under-followed special situations and deep value opportunities, with an emphasis on proven and incentivized management teams, identifiable catalysts for value realization, and securities with the potential to double in value within a three year timeframe. The Fund never blindly believes conventional wisdom and takes relatively concentrated, high-conviction positions with a rigorous focus on original research. Investment due diligence emphasizes business model analysis, extensive scuttlebutt research, management and competitor interviews, quality of earnings, and establishing a variant perception.
Prior to founding Voss Capital LLC in 2011, Mr. Cocke was a portfolio manager at Farney Management Corp., a Georgetown, TX-based family office. Prior to that, he was an analyst at Houston-based Ascendant Advisors LLC. Mr. Cocke joined Ascendant in 2009 as a generalist research analyst. Mr. Cocke also interned at the Texas Teachers Retirement System in the summer of 2008 and interned at Omega Advisors, a long-short fund based in NYC. Mr. Cocke received third place in the inaugural SumZero write-up contest in summer of 2013 and “Judges’ Top Pick” for the best investment idea for the Pitch Perfect contest at the 2014 Texas Investment Conference. Mr. Cocke serves as President of the Texas A&M Houston Titans Alumni Association and received a BBA in Finance from Texas A&M University.
Hanson Wells Partners
Long on Hertz Global Holdings Inc (HTZ:US)
Summary: Leading rental car co (substantially higher margins & fleet efficiency vs. peer CAR) trading at 59% discount to IV ($34.50); Multiple near-term, reasonably-attainable catalysts to reach IV.
Prior to founding Hanson Wells Partners, David Hanson was a Vice President in Investment Banking at Deutsche Bank in New York. In his role at Deutsche Bank, Mr. Hanson was responsible for providing investment banking advisory services to both public and private companies in the financial services industry. During his career at Deutsche Bank, Mr. Hanson advised specialty finance, asset management, insurance, and financial technology companies on the issuance of over $5 billion in equity, debt, and convertible securities. He also advised clients on numerous merger and acquisition transactions. Prior to his time at Deutsche Bank, Mr. Hanson was a securitization investment banker at PNC Capital Markets. In that role, Mr. Hanson provided asset backed securities investment banking advisory services to consumer and commercial finance companies in the auto finance, credit card, student loan, and equipment finance sectors, among others. Mr. Hanson began his career on the mezzanine private equity team at Salem Capital Partners. Mr. Hanson studied Political Science and Analytical Finance at Wake Forest University.
Hanson Wells Partners (HWP) is a contrarian value investing partnership managed by David R. Hanson and David C. Wells, Jr., and based in Nashville, TN. HWP is a long/short equity fund focused on liquid opportunities in the consumer, energy, financials, and industrials verticals. The strategy is value-oriented, long-term focused, and paired with long-term committed capital.
Deerwood Capital, LLC
Long on Investment AB Kinnevik (KINVB:SS)
Summary: Co-invest with Swedish value-oriented owner-operators with a 30-year record of 16%/yr returns while acquiring unique emerging market e-commerce and telecom businesses at a discount to NAV.
Joshua Soong, CFA, founded Deerwood Capital in early 2009 to provide a concentrated, non-leveraged, low-turnover alternative to the typical alternative investment. Our investment philosophy is based on buying securities at discounts to their intrinsic value and treating share ownership as equivalent to owning the entire business. We invest long-term in businesses with sustainable competitive advantages, purchased at prices yielding significant appreciation potential, and run by skilled management aligned with shareholders. Prior to founding Deerwood, Josh served as an Equity Analyst at a family office in Newport Beach and as a Trader at Citadel on the energy desk. He is a graduate of MIT with dual B.S. degrees in EECS and Economics. In addition to reading annual reports, Josh enjoys spending time with his family, running marathons for charity, and checking out books from the library.