Ira Sohn: Which 2010 tips did the best?

By Lawrence Delevingne

Tue May 24, 2011

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Ackman's, Eisman’s and Arbess’s suggestions won big while Einhorn’s shorts were crushed and Tepper’s picks were a mix.


With the 2011 Ira Sohn Investment Research Conference event hours away, AR looked back at how some of last year's investing tips from the hedge fund industry's biggest names played out over the past 12 months.

The period spans 5/25/10 to the market's close on 5/24/11. Winning bets are in

green
, losers in
red
.

Speaker

Firm

May 26, 2010 Message

Results

Jonathon Jacobson

Highfields Capital Management

Buy Sallie Mae (SLM).

SLM: +53.91%


Daniel Arbess

Perella Weinberg Partners

Shake hands with China; buy what rising EM consumers need. Bearish on the Euro and European sovereign debt. Like gold and other precious metals; especially junior mining companies like Ivanhoe Mines (IVN). Other longs: Solutia (SOA), Celanese (CE), Yum! Brands (YUM). Shorts: Yen against Canadian Dollar.

Gold prices: +25.32%

IVN: +87.47%

SOA: +62.5%

CE: +80.57%

YUM: +40.02%

Yen vs. Canadian Dollar: Flat

David Tepper

Appaloosa Management

Future not so bleak; people will adapt. Long: AIG ("8.175 Junior Subordinated Debt"); CMBS Market ("lots of gems out there"); financials, especially Bank of America (BAC) and Santander (STD).

BAC: -25.58%


STD: +5.38%


Steve Eisman

FrontPoint Financial Services

For-profit education is just like the sub-prime bubble. Short: Apollo (APOL), ITT Educational Services (ESI), Washington Post (WPO), Corinthian Colleges (COCO), Education Management Corp (EDMC) [Full presentation here]

APOL: -25.59%

ESI: -35.27%

WPO: -13.09%

COCO: -72.47%

EDMC: -2.63%

Jeremy Grantham

GMO

Likes timber investment management organizations (TIMOs), emerging markets, U.S. high quality blue-chip stocks. Short: U.K. and Australian housing ("A true bubble").

S&P 500 (SPY): +22.5%

Vanguard MSCI Emerging Markets ETF (VWO): +27.36%

David Einhorn

Greenlight Capital

Long: gold, especially African Barrick Gold (London: ABG). The new bubble is sovereign debt. Short: Moody's (MCO), McGraw-Hill Companies (MHP).

ABG: -17.13%

MCO: +78.39%

MHP: +48.83%

James Dinan

York Capital Management

Likes large company stocks. Long: Coca-Cola Enterprises (CCE). Also like ING Group (ING) and post-bankruptcy equities like LyondellBasell, (LALLF) and liquidation plays like Kaupthing Bank (OMX: KAUP). Short: Euro-zone currencies.

CCE: +15.49%

ING: +47.55%

LALLF: +47.11%

Larry Robbins

Glenview Capital Management

Too much macro uncertainty; pick selective stocks that will perform regardless. Long: McKesson (MCK), Express Scripts (ESRX), Life Technologies Corporation (LIFE), Fidelity National Information Services (FIS).

MCK: +22.54%

ESRX: +18.18%

LIFE: +8.09%

FIS: +19.3%

Bill Ackman

Pershing Square Capital Management

Buy General Growth Properties (GGP) and Citigroup (C).

GGP: +20.49%

C: +7.17%




Image on homepage: Bill Ackman, managing director of Pershing Square Capital Management, speaks during the Ira Sohn Investmen Research Conference in New York, U.S., on Wednesday, May 26, 2010. Photographer: Daniel Acker/Bloomberg