Sohn Conference Highlights Diverse Investment Strategies and Short Selling Insights

Einhorn bets on Solvay at Sohn Conference, highlighting its market leadership despite a 70% share decline.

By Alex P. Chase

4/3, 13:56 EDT

Key Takeaway

  • David Einhorn of Greenlight Capital backs Solvay, citing its market leadership and high-margin business despite a 70% share decline.
  • Emerging managers at Sohn Conference spotlight diverse investments, including Pason Systems, Crinetics Pharmaceuticals, and Alimentation Couche-Tard.
  • Short selling insights focus on Sealed Air, Globe Life, and Adtalem Global Education due to debt issues, regulatory risks, and poor outcomes.

Investment Insights at Sohn Conference

The Sohn Investment Conference in New York, a highly anticipated event among hedge fund professionals, showcased a variety of investment strategies from both established and rising stars in the industry. David Einhorn, a notable figure in the hedge fund world and founder of Greenlight Capital, revealed his investment in Solvay, a European chemicals company. Despite Solvay's shares declining more than 70% over the past year, Einhorn highlighted the company's leading position in its market and its stable, high-margin business model compared to other commodity chemical businesses.

Rising Stars' Top Picks

During the "Next Wave Sohn" session, emerging hedge fund managers shared their best investment ideas, showcasing a diverse range of sectors from energy to pharmaceuticals and retail. Eric Wolff of Gumshoe Capital Management endorsed Pason Systems, citing its dominant market share and potential for significant upside. Michelle Ross from StemPoint Capital presented a bullish case for Crinetics Pharmaceuticals, emphasizing its potential in the endocrine health market and substantial upside targets. Nikhil Daftary of NK Capital highlighted Alimentation Couche-Tard's growth prospects, particularly in the context of the evolving electric vehicle market.

Short Selling Perspectives

The conference also featured insights into short selling, with several managers presenting their cases against specific companies. Chris Drose of Bleecker Street Capital targeted Sealed Air, describing it as a company with significant debt and diminishing prospects. Nate Koppikar from Orso Partners criticized Globe Life for its business practices, predicting a potential drop in stock value due to regulatory scrutiny. Fahmi Quadir of Safkhet Capital expressed a strong conviction in shorting Adtalem Global Education, pointing to its poor student outcomes and reliance on taxpayer-funded subsidies.

Street Views

  • David Einhorn, Greenlight (Bullish on Solvay):

    "Solvay is an essential chemical company that holds the number one position across all of its markets. While all of these are thought of as commodity businesses, they are higher margin and much more stable than most commodity chemical businesses."