The Ira Sohn conference -- one of the most closely-watched
investor conferences of the year -- kicks off Monday afternoon.
Some of the biggest names in the hedge-fund world -- Greenlight
Capital's David Einhorn, Omega Advisors' Leon Cooperman, Pershing
Square Capital Management's William Ackman, and many more -- will
take the stage to deliver a mix of stock picks, companies they're
betting against, and macro investment ideas. All of this is for the
benefit of the Ira Sohn foundation, which finances initiatives to
cure and treat pediatric cancer.
Stock prices will rise and fall as these investors state their
opinions. MoneyBeat will bring you all the presentations live from
Lincoln Center.
3:25 pm | Another Break | by David Benoit
That's it from Gundlach today, and we're into another
intermission as the conference blasts The Rolling Stones "Start Me
Up."
The show will start again at 4:20 with David Tepper taking the
stage.
3:23 pm | More on Puerto Rico | by David Benoit
He also recommended the pension obligation bonds of Puerto
Rican. So all in, he's confident the economy there is recovering
enough to handle its debt loads, not exactly a common thought in
the last few years.
3:20 pm | Puerto Rican Bonds | by David Benoit
Gundlach's recommendation for going long is Puerto Rican bonds,
which he's been buying recently. He says the beaten-down bonds
there are a good bet. He says they may go lower now, but overall is
confident they will be paid.
3:19 pm | More on high-yield | by David Benoit
Gundlach warns that if interest rates start jumping, instead of
the gradual increase he and others expect, that the market isn't
ready for it and few have really experienced it. He says there are
a couple of years of runway but that high-yield bonds may take a
big hit if this happens.
3:17 pm | High-yield concerns | by David Benoit
Gundlach says the quality of high-yield bonds are weak right now
and that throughout history as interest rates rise they do poorly.
But he says he's not that concerned right now, the maturities are
further out toward 2020.
3:15 pm | A Bottom | by David Benoit
After a lot of charts about interest rates and bonds, Gundlach
says he thinks interest rates have bottomed.
3:11 pm | Interest Rates | by David Benoit
Now he's onto interest rates: He says Fed is driving all the
discussion in the market, as people try to figure out what exactly
is going to happen. Which he compares to a merry-go-round.
3:10 pm | Art it is | by David Benoit
True to form, Gundlach is off on some discussion about art and
abstraction and the famed Piet Mondrian. And Ernest Heminway.
Gundlach usually has some elaborate windup and then a big
reveal.
3:06 pm | Gundlach | by David Benoit
And onto Jeffrey Gundlach, one of the most successful bond
investors out there, who is likely to skip the Tinder talk but
include modern art and some strange analogies so strap in.
Recently, he's sounded a warning about high-yield, or junk,
bonds being risky.
3:04 pm | More Tinder | by David Benoit
This is the most bullish case maybe made yet for Tinder. This
guy loves it, with a nod to his girlfriend. And he says online
dating is revolutionizing and Tinder is at the forefront.
That's the kind of fun you get here.
2:59 pm | Tinder Talk | by David Benoit
And yes, this pitch is based partly on Tinder, folks.
He hears there's "no upside" to Tinder. This is a student
betting on Tinder, which, if you readers don't know, is a dating
website based nearly entirely on looks.
"Online dating is bringing liquidity to the market."
2:56 pm | A Winner | by David Benoit
Up now, the winner of the Sohn idea contest judged, by David
Einhorn, Bill Ackman, Seth Klarman and Michael Price.
The contest is open to students and professionals. The winner's
pitch was IAC/InterActive.
2:54 pm | Upside potential | by Sarah Krouse
She says it's "hard to see" downside from here, but lots of
upside given the changes underway at Microsoft.
2:52 pm | Cost cutting | by Sarah Krouse
Ms. Gaonkar is now talking about operating cost cutting at
Microsoft, pointing to "optimized spending" and a new reporting
structure within the firm.
2:47 pm | Pros for Microsoft | by Sarah Krouse
Ms. Gaonkar begins to make her case by highlighting new strong
management at Microsoft, including recently rejigged research and
development teams. Top line growth, the "least well understood"
figure, is also a positive for the tech company, she said.
2:43 pm | Legacy tech | by Sarah Krouse
Next up, we have Mala Gaonkar, co-portfolio manager at Lone Pine
Capital LLC.
She's going to talk about "the value that's hidden in legacy
tech." Her idea: Microsoft, "the butt of every tech ad joke."
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