- Home
- >
- Market Rumours
- >
- The hottest sectors and investments in the hedge fund industry
The hottest sectors and investments in the hedge fund industry
Rating:
Loading...The big names of the hedge fund industry, including David Einhorn and Larry Robbins, gave ideas for shares ranging from aircraft landlords to biotech companies that are working to lengthen the human life at the Sohn Investment Conference in New York on Monday.
Greenlight Capital’s Einhorn, who made his name pitching a timely short of Lehman Brothers before the 2008 global financial crisis, announced a long position in airplane leasing company AerCap Holdings and a short position in rail car leasing company GATX Corp, which he said has higher maintenance costs and less visibility into future revenues but trades at higher multiples than AerCap.
"We think the market is wrong here," he said.
"Einhorn, who is a prominent critic of Tesla Inc., has begun his 15-minute presentation with a quiet display of Tesla CEO's slides, Elon Musk, and his bullish forecasts for the company before calling them "a lot of horseshit."
Larry Robbins of Glenview Capital LLC, meanwhile, reiterated his long positions in HMOs such as Cigna Corp, whose shares have fallen on concerns about progressive Democratic candidates endorsing so-called “Medicare for all” plans ahead of the 2020 elections. He also remained bullish on hospitals overall.
"Hospitals are not in danger, they are an incredible place to invest," he said.
The broad spectrum of investment ideas reflects the challenge for portfolio managers to find underestimated assets at a time when global stock markets are close to their historic peaks.
The average hedge fund is up 5.7% in the first quarter, the best start of the year since 2006.
Not all the investment ideas were bullish. Ryan Heslop, portfolio manager of Firefly Value Partners LP, announced a short position in rural hospital operator Community Health Systems Inc, which he said will likely go bankrupt over the next few years as its revenue per hospital bed shrinks and its debt costs increase.
"The company's pile of debt and the declining profitability of hospitals make it almost certain that this patient will die," he said.
Spencer Glendon, founder of Probable Futures, said increasing global temperatures and more severe storms due to the effects of climate change will undercut the economy of Florida and its housing market.
"When the housing market in Florida collapses, everyone will follow it ... you are too dependent on real estate," he said.
Laura Deming, managing director of the Longevity Fund, announced positions in biotech companies such as Precision BioSciences Inc, ALX Oncology and Navitor Pharmaceuticals that are working to extend the human lifespan by targeting specific cells and biological processes.
"Shouldn't we choose how long we will live," she said.
Source: Reuters
Original Post: Healthcare, bullish bets dominate hedge-fund Sohn Investment Conference picks
Trader Aleksandar Kumanov Read more:
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
