AMP’s board must focus on breaking up and selling parts of the 173-year group in an orderly way, to avoid repeating “bad old habits” and making ill-fated acquisitions.
That’s the view of Samuel Terry Asset Management founder Fred Woollard who on Friday outed AMP as his top stock pick at the Sohn Hearts & Minds investment conference in Hobart.
“The sum of the parts are worth substantially more than its market capitalisation,” he said, delivering the value manager’s first presentation to the conference, which is in its seventh year.
Mr Woollard said AMP’s shares were worth at least $2 and up to $2.17 on his model, versus its current price of $1.285.
He outlined that asset sales meant AMP would soon have surplus cash of more than $2bn, it owned a profitable bank, wealth business in New Zealand while its platform business was worth about $1bn. Samuel Terry’s AMP model put the value of its three international minority stakes at least $685m or up to $1bn.
“AMP‘s mix of assets do not belong together. There are no synergies between an Australian and New Zealand wealth manager and a minority stake-owned Chinese pension manager,” Mr Woollard said. “Keeping these assets together is costing AMP shareholders lots of money. Shrinking and simplifying AMP should not be rushed, it should be done in an orderly and considerate (manner).”
While AMP was one of four local stocks among the best picks at the Sohn conference, it was international stocks – including those across laboratory services, semiconductors and retail – that dominated the top picks.
Cooper Investors’ founder and investment chief Peter Cooper named Eurofins at his top pick for this year. The Luxembourg-headquartered group provides lab testing and support services to the pharmaceutical, food, environmental industries, among others.
“One of the attributes of the service is it’s really cheap,” Mr Cooper said. He noted Eurofins conducted 450 million tests per annum at a cost of about $15 per test for things such as food safety.
“Every year in this industry of testing, volumes are going up 5 per cent a year,” he said.
“It’s a terrific dynamic in a mission-critical product.”
Mr Cooper – whose firm manages $10.5bn – also highlighted Eurofins was delivering returns of 26 per cent per year for shareholders, surpassing returns of local stocks CSL and Macquarie Group.
“We think this thing’s worth €100 ($155) a share,” he said. Eurofins last traded at €66.50.
Claremont Global portfolio manager Bob Desmond picked sportswear giant Nike as his top pick. Just buy it, he quipped.
He said the company was “hoovering up data” that allowed it to innovate and deliver the right product to consumers, and had targeted having 60 per cent of sales made direct to consumers by 2025. Mr Desmond estimated Nike would get a 100 basis point tailwind from bypassing retailers.
The Sohn conference, held annually, had before Friday’s event made more than $40m in collective donations to medical research. It applies the stock picks made by fund managers in an investment portfolio. The listed fund’s latest performance update noted 8.3 per cent returns per annum since inception in November 2018, but it cited “disappointing” underperformance in October. Among its top 10 holdings are Alphabet, BHP, Visa and Zillow.
Tribeca Investment Partners portfolio manager Jun Bei Liu opted for a Chinese retail stock for her best pick. China Duty Free Group – the biggest duty free operator in the world – offered a “phenomenal opportunity” due to an expected “explosion of (Chinese) tourist numbers” in coming years as the pandemic receded, she said. Ms Liu noted growth would be delivered as the company pursued geographic expansion.
Munro Partners founder and investment chief Nick Griffin highlighted Dutch-listed company ASML as his stock pick.
ASML produces lithography tools for the production of semiconductors and Mr Griffin said the group was “a monopoly” in the high-end part of the market selling its products to companies including Samsung and Intel.
“We see ASML’s (earnings-per-share) growing from €14 today to €41 by 2025 … we expect their earnings to accelerate,” Mr Griffin said, noting the stock had fallen in line with other semiconductor shares, but should “grow dramatically” in coming years.
Eminence Capital founder and chief executive Ricky Sandler named California-based New Relic, a company that allows organisations to monitor IT infrastructure, as his best pick.
The $US4bn market cap company develops cloud-based software to help website and application owners track the performance of their services.
“Up until recently they had been losing share based on their transition to a new product platform in 2020 and 2021,” Mr Sandler said. “The stock trades at a big discount to its peers.”
Over five years, NextDC, JB Hi-Fi, TradeDesk, Nickel Mines and MinRes are among the best performers among the conference picks. Among the worst, based on current prices, are Coinbase, Ping An, Teladoc Health, Spotify and Megaport, which have tumbled more than 70 per cent since they were pitched in 2020 and 2021.
This article was originally posted by The Australian here.
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Two hundred of Australia’s best and brightest money managers, bankers and entrepreneurs toasted the seventh Sohn Hearts and Minds conference at David Walsh’s Museum of Old and New Art, better known as MONA, in Hobart on Thursday night.
Fund manager turned anti-corruption campaigner Bill Browder is advising investors to hang on to their cash until central banks stop raising interest rates and the cost of living starts to come down, before investing it strategically.
The Sohn Hearts & Minds Investment Leaders Conference, held annually, had before Friday’s event made more than $40m in collective donations to medical research. It applies the stock picks made by fund managers in an investment portfolio.
Professional gambler and arts impresario David Walsh had a brutal message for successful top money managers – you may just be lucky.
Technology behind the tech; healthier lifestyles; the green transition and regulatory tailwinds. These are the mega-themes the smartest minds in the market are now firmly getting behind which they believe can help them deliver outsized profits.
A room filled with 700 of the country’s financial luminaries and billionaires is a difficult place to pitch an investment idea but it’s a great place to raise money for charity.
Top global money managers are telling investors to steer clear of companies that don’t make money and invest instead in unloved but profitable businesses, as continuing central bank interest rate rises threaten to keep markets falling.
Perpetual’s star stock picker Anthony Aboud says companies with strong balance sheets will finally be rewarded for their discipline in an environment of rising interest rates and global market upheaval.
Perpetual’s top stock picker Anthony Aboud makes his money running against the crowd and this is why property trusts like Charter Hall are sitting right the top his list right now.
Some of the top fund managers in the country will on Friday pitch their best investment ideas to the Sohn Hearts & Minds conference.
Twenty students from Kingston High School have been given the opportunity to attend the prestigious Sohn Hearts & Minds conference this week.
Gerry Cardinale, the owner of AC Milan and a host of other soccer, cricket, baseball and ice hockey assets is trying to double his money in the ‘resilient’ asset class.
Carleton’s conviction will be on full display on Friday, when he makes his third appearance at the annual Sohn Hearts & Minds Investment Leaders Conference, where stock-pickers share their best ideas in the name of medical research.
James Miller, a portfolio manager at Firetrail Investments, believes investors need to stop seeing the global decarbonisation push as a risk – and start seeing it as an opportunity.
Maggie O'Neill, Head of Marketing and Operations at HM1 joined Nick Griffin, CIO of Munro Partners to discuss the history of Hearts & Minds, Munro Partners' involvement and Nick's upcoming stock pitch.
Bob Desmond is Head of Claremont Global and Co-Portfolio Manager. He will present at the Sohn Hearts & Minds Investment Leaders Conference in Tasmania on November 18.
An increasing intransigence from authorities in Beijing toward private enterprise - and harsh pandemic restrictions - might be keeping some investors away, but the same factors are creating good opportunities in Chinese stocks.
Joyce Meng is a presenter at this year’s Sohn Hearts & Minds Investment Leaders Conference on November 18, which takes place in Hobart and aims to raise money for medical research.
Founder, CIO and CEO of Eminence Capital Ricky Sandler talks about his journey launching the $5.7 billion dollar asset manager, how the market has changed over the past decade and his motivations for participating in this year's Sohn Hearts & Minds conference.
Munro’s Nick Griffin on why he prefers Alphabet and Amazon over Meta, shorting industrials and Chinese equities, and his top picks for the energy transition.
When Auscap Asset Management founder Tim Carleton tips a stock at this month’s Sohn Hearts & Minds conference in Hobart, he doubts it will be a name that shocks investors.
The veteran fund manager says the most uncertain period of his career will deliver huge opportunities – providing his firm can stick to its system.
One of the nation’s most influential fund managers has warned that investment markets have entered a “new phase”, with hidden risks in the form of debt sitting in super funds, private equity and big investors that is set to test the financial system.
Speaking to The Australian Financial Review before the Sohn Hearts & Minds conference, Sandler named global on-demand ride-sharing and food delivery service Uber Technologies among his top picks, alongside real estate marketplace Zillow.
When former Amcor chief executive Ken MacKenzie was named the new chairman of BHP five years ago, that was a sign for top-rated fund manager Peter Cooper to move back into the mining giant.
Jun Bei Liu is the lead portfolio manager at Tribeca Alpha Plus Fund. Ms Liu is set to present an investment idea at the Sohn Hearts & Minds conference in Tasmania on November 18.
Regal’s hedge fund focused on the resources space has thumped the market and its top stock picker, Tim Elliott, says resources stocks are still cheap.
Desmond, who worked in London before moving to Australia in 2008, is making his first appearance at the annual Sohn Hearts & Minds Investment Leaders Conference, where fund managers give their favourite stock tips to raise money for medical research charities.
The WaveStone principal says retail will drop away but quality operators will find a way through.
Catherine Allfrey, Principal and Portfolio Manager of WaveStone Capital will be speaking at this year's Sohn Hearts & Minds Conference in Hobart which raises funds for Australian medical research.
Bill Browder, the fund manager who has become one of Vladimir Putin’s fiercest critics, says the Russian leader is increasingly desperate, but no less dangerous.
Bill Browder, once the largest foreign investor in Russia and the man behind the global Magnitsky justice campaign, says the US is the weakest link in the war in Ukraine.
There are many descriptors for Browder, including Russia’s anti-corruption crusader, and its most dogged oligarch hunter. But it’s his title as Putin’s No.1 foreign enemy that bestows on him another label - consummate survivor.
On November 18, Griffin – with $4.7bn under management at Munro Partners – heads to Hobart for this year’s face-to-face pitch to investors on his 2023 pick.
Tim Carleton, founder of Auscap Asset Management and 2022 Conference Fund Manager sat down with Equity Mates to discuss his investment philosophy and what makes a great Australian company.
When investor Kara Nortman and actor Natalie Portman decided to start a soccer team, they created a brand that has grabbed the sporting world’s attention.
Sporting teams and leagues are becoming serious investments for global firms managing billions of dollars, as private equity funds eye off the sector’s growth potential and resilience to economic slumps.
Australia’s sports leagues are being held back by a culture of conservatism and need to be more open to private equity investment or risk falling behind, investors say, with Netball Australia’s rejection of a $6.5m bailout cited as just one example of administrators’ aversion to private capital. Conservative Australian sports leagues are ‘letting investment opportunities pass them'.
A financier and political activist who is viewed as a key enemy of Russia’s government will address Australian investors on the war in Ukraine at this year’s Sohn Hearts and Minds conference, as the conflict continues to have a major influence on global markets.
Keynote speaker will be Bill Browder, the former Hermitage Capital hedge fund manager that has become an arch nemesis of Russian President Vladimir Putin, as he has lobbied governments to black-list senior Russian officials attempting to shift their assets offshore.
Bill Browder, one of Russian President Vladimir Putin’s fiercest critics, the founder of Hermitage Capital and the man behind the Magnitsky Law on human rights, will headline this year’s Sohn Hearts & Minds investor conference.