We are pleased to announce the Winners, Runners-Up, and Honorable Mentions for the fourth and final leg of the FactSet Top Idea Tournament, the Large Cap contest. We would like to thank everyone who participated, including our esteemed Judges Panel, as well as our partner FactSet Systems for their support in this initiative and their sustained commitment to the generation of differentiated investment research. For those participants whose ideas are not identified as Winners, Finalists, and Runners-Up, your ideas remain in contention for Performance-Based Cash Awards, as well as the Grand Prizes, all worth $66k in cash and much more. The End-of-Year Awards Dinner is tentatively slated for September 2015 during which time we'll honor all the excellent research from the past year and give out all remaining awards.
The Large Cap Winner, Travis Cocke of Houston's Voss Capital, appeared on CNBC's Halftime Report today to quick pitch his idea alongside SumZero's CEO Divya Narendra. Check Out the Royal Caribbean CNBC Pitch Here.
Your winners in the FactSet Best Short contest are:
1st Place: Travis Cocke (Voss Capital)
Short on Royal Caribbean Cruises Ltd (RCL:US)
Elevator Pitch: RCL valuation is at an all time high. Investors value RCL on Px/Fwd EPS when it has neg. cumulative FCF since inception. Shares should trade below BV of invested capital even @ 10% ROIC.
Mr. Cocke has over seven years of direct public market investment experience. He currently is the Founder/Managing Partner of Voss Capital LLC. The Voss Value Fund employs a long-short equity strategy focused primarily on domestic small and micro caps. The Fund aims to make investors money by capitalizing on under followed special situations and deep value opportunities with an emphasis on proven and incentivized management teams, identifiable catalysts for value realization, and securities with the potential to double in value within a three year time frame. The Fund never blindly believes conventional wisdom and takes relatively concentrated, high-conviction positions with a rigorous focus on original research. Investment due diligence emphasizes business model analysis, extensive scuttlebutt research, management and competitor interviews, quality of earnings, and establishing a variant perception.
Prior to founding Voss Capital LLC in 2011, he was a Portfolio Manager at Farney Management Corp., a Georgetown, Texas based family office and Analyst at Houston based Ascendant Advisors LLC. Mr. Cocke joined Ascendant in 2009 as a generalist research analyst. Mr. Cocke also interned at the Texas Teachers Retirement System in the summer of 2008 and interned at Omega Advisors, a long-short fund based in NYC. Mr. Cocke received third place in the inaugural SumZero write-up contest in summer of 2013 and “Judges’ Top Pick” for the best investment idea for the Pitch Perfect contest at the 2014 Texas Investment Conference. Mr. Cocke serves as President of the Texas A&M Houston Titans Alumni Association. Mr. Cocke received a BBA in Finance from Texas A&M University.
2nd Place: David Hanson (Hanson Wells Partners)
Long on Hertz Global Holdings Inc (HTZ:US)
Elevator Pitch: Leading rental car co (substantially higher margins & fleet efficiency vs. peer CAR) trading at 59% discount to IV ($34.50); Multiple near-term, reasonably-attainable catalysts to reach IV.
Prior to founding Hanson Wells Partners, David Hanson was a Vice President in Investment Banking at Deutsche Bank in New York. In his role at Deutsche Bank, Mr. Hanson was responsible for providing investment banking advisory services to both public and private companies in the financial services industry. During his career at Deutsche Bank, Mr. Hanson advised specialty finance, asset management, insurance, and financial technology companies on the issuance of over $5 billion in equity, debt, and convertible securities. He also advised clients on numerous merger and acquisition transactions. Prior to his time at Deutsche Bank, Mr. Hanson was a securitization investment banker at PNC Capital Markets. In that role, Mr. Hanson provided asset backed securities investment banking advisory services to consumer and commercial finance companies in the auto finance, credit card, student loan, and equipment finance sectors, among others. Mr. Hanson began his career on the mezzanine private equity team at Salem Capital Partners. Mr. Hanson studied Political Science and Analytical Finance at Wake Forest University.
Hanson Wells Partners (HWP) is a contrarian value investing partnership managed by David R. Hanson and David C. Wells, Jr., and based in Nashville, TN. HWP is a long/short equity fund focused on liquid opportunities in the consumer, energy, financials, and industrials verticals. The strategy is value-oriented, long-term focused, and paired with long-term committed capital.
3rd Place: Joshua Soong (Deerwood Capital, LLC)
Long on Investment AB Kinnevik (KINVB:SS)
Elevator Pitch: Co-invest with Swedish value-oriented owner-operators with a 30-year record of 16%/yr returns while acquiring unique emerging market e-commerce and telecom businesses at a discount to NAV.
Joshua Soong, CFA, founded Deerwood Capital in early 2009 to provide a concentrated, non-leveraged, low-turnover alternative to the typical alternative investment. Our investment philosophy is based on buying securities at discounts to their intrinsic value and treating share ownership as equivalent to owning the entire business. We invest long-term in businesses with sustainable competitive advantages, purchased at prices yielding significant appreciation potential, and run by skilled management aligned with shareholders. Prior to founding Deerwood, Josh served as an Equity Analyst at a family office in Newport Beach and as a Trader at Citadel on the energy desk. He is a graduate of MIT with dual B.S. degrees in EECS and Economics. In addition to reading annual reports, Josh enjoys spending time with his family, running marathons for charity, and checking out books from the library.
If you want access to all the ideas from the contest (Runners-Up, Honorable Mentions, etc) and the thousands on other pieces of buyside research,