Monday, May 5, 2014

Sohn Conference: Buyer Beware?

As my colleagues Dimitra DeFotis and Brendan Conway blog away from the Sohn Conference, Birinyi Associates’ Chris Costelloe posts a timely reminder: most of the last year’s picks haven’t done so well.

Since the last conference, for every winning pick like Akamai Technolgies (AKAM)–which gained 19% after being picked by Blue Harbour Group’s Clifton Robbins–or Digital Realty Trust (DLR)–which rose fell 27.5% after being picked as a short by Jonathon Jacobson of Highfields Capital Management–there’s been a stinker like Chipotle Mexican Grill (CMG)–which gained 29% after Double Line’s Jeffrey Gundlach recommended shorting it–or Dex Media (DXM)–which advanced 53.7% after Hayman Capital’s Kyle Bass recommended selling. In fact, the average pick lost 3.8%, even as the S&P 500 gained 15.2%.

There’s a moral here somewhere.

For more Barron’s Sohn Conference coverage, click here, here, here and here.

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