NEW YORK (Reuters) – Hedge fund managers at New York's high-level son investment conference announced stock ideas on Monday to capitalize on the growing importance of the millennium generation, from online food ordering to food retailing Homeowners.
John Khoury, founder and managing partner of the $ 2.7 billion Long Pond Capital Hedge Fund, revealed a long position in US builders DR Horton Inc. ( DHI.N ), which he said should rise as more millennials age in the first home buyer market.
D.R. Horton, the country's largest home builder, has increasingly focused on its entry-level segment, which the company expects to grow strongly in January over the next three years.
Two investors host online food ordering companies. Alexander Captain, who manages Cat Rock Capital Management, introduced the Dutch Takeaway.com NV ( TKWAY.AS ), while Li Ran, who operates Half Sky Capital, GrubHub Inc. ( GRUB.N ), the parent company of Seamless. She said that GrubHub earns $ 30 per order and earns 15% of every order, with spending growth in restaurants surpassing grocery spending.
"I like to call this table" Millennials can not cook, "Ran laughed.
Millennials, a term for those born between 1981 and 1996, are believed to be the largest generation in 2019 according to estimates by Pew Research
Jeffrey Gundlach, one of the world's top rated investors, recommended a short position on social media giant Facebook Inc ( FB.O ) and a long position in SPDR S & P Oil and Gas Exploration ETF ( XOP.P ).
"Facebook used to be a place where people felt comfortable," said Gundlach.
Facebook came under pressure as the company recognizes the misuse of user data.
Investors were confident that their stock picking at a time when the broad S & P 500.SPX lagged and retail customers was nervous about the longevity of the company long-term profits of the stock market, was confident.
Khoury of Long Pond Capital suggested that D.R. Horton has more than 60 percent profit, while Ran of Half Sky Capital said GrubHub could reach $ 160 a share, an increase of about 55 percent from its closing price of $ 102.17 on Monday.
Glen Kacher, founder and chief investment officer of Light Street Capital, announced a long position with online security firm Palo Alto Networks Inc ( PANW) .N ), of which he said he has a plus of 164 percent by 2020.
Chamath Palihapitiya, founder and chief executive officer of Social Capital LP, offered a bullish takeover of cloud management firm Box Inc ( BOX.N ), which could move the stock over the next 10 years Grow 10 times.
"If you believe in it and be around AI [Artificial Intelligence] and its role in the world, be long Amazon ( AMZN.O ), be long Google ( GOOGL.O But long box, Palihapitiya said, calls Box a "really interesting disruptive enterprise."
Box's shares closed on Monday nearly 11 percent, which made them positive for the year so far.
The organizers of the son Conference said they expected up to 3,000 visitors at the Lincoln Center in New York, making Son one of the most prominent investment conferences of the year.
Against the background of more volatile markets and concern that some of the largest hedge funds Fund managers this year lost care in the audience, focusing on smaller and more powerful investors like Oleg Nodelman.
Nodelman, founder and CEO of EcoR1 Capital LLC, whose funds reported 53 percent last year announced a long bet on the pharmaceutical company Ascendis Pharma A / S ( ASND.O ).
Larry Robbins, of Glenview Capital Management LLC, threw cold water at the notion that Amazon.com Inc ( AMZN.O ) will enter the drug distribution business and reiterated the bullish case for its existing positions in McKesson Corp. ( MCK.N ), Express Scripts Holding Co ( ESRX.O ) and CVS Health Corp. ( CVS.N ).
"Amazon does not always win," he said.
David Einhorn, whose Greenlight Capital fell 14 percent in the first quarter, presented an existing short position in bond insurance company Assured Guaranty Ltd ( AGO.N ). The stock fell 6 percent in after-hours trading and erased its profit for the current year.
Assured Guaranty is "a melting ice cube that spills out the drops while it's still working," Einhorn said.
Reporting by David Randall; Arrangement by Jennifer Ablan and Leslie Adler