AI, bitcoin and e-commerce trades lead Sohn conference’s best ideas
From artificial intelligence to a bitcoin long short trade, emerging hedge fund managers touted their best ideas at the Sohn San Francisco investment conference on Tuesday. AI pick Ravi Paidipaty of Freestone Grove Partners pitched Semtech Corporation , a so-called mixed signal semiconductor company. Semtech will be a winner in next-gen AI data center connectivity, which will drive accelerating growth, margin expansion and significant earnings revision, the manager said. Paidipaty is optimistic about the new CEO Hong Hou who has been focused on internal and external execution. The investors sees 65% earnings-per-share growth for Semtech in the mid-term with long-term earnings power more than doubling today’s level. Long short bitcoin trade Franklin Parlamis of Aequim Alternative Investments is touting a long short trade that involves bitcoin and Strategy, which is also backed by famed short seller Jim Chanos. Parlamis’ best idea is to buy bitcoin ETF and simultaneously short Strategy stock. Strategy has a software and cloud company but it’s also a bitcoin treasury company that holds nearly $70 billion worth of the digital token. The company has used leverage to amass its crypto stockpile and trades at a large premium to its bitcoin holdings. “In Strategy, you’re paying nearly a 50% premium for the bitcoin,” he said. E-commerce name Louis Chang of Gavilan Investment Partners highlighted South Korean e-commerce company Coupang . “Coupang is the leading e-commerce company in South Korea, not only the largest operator South Korea, but one of the fastest growing e-commerce businesses globally,” Chang said. “Almost half of Korea’s entire population reaches Coupang on a regular basis.” Coupang has created a “virtuous flywheel” for the business via its extremely customer friendly services, Chang said. Over the next three to five years, Chang expects Coupang shares to double in his base case and triple in his upside case.
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