Healthcare, bullish bets dominate hedge-fund Sohn Investment Conference picks

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: Big-name hedge fund managers, including David Einhorn and Larry Robbins, pitched stock ideas ranging from airplane lessors to biotech companies that are working to extend the human lifespan at the Sohn Investment Conference in New York on Monday.

Greenlight Capital’s Einhorn, who made his name pitching a timely short of Lehman Brothers before the 2008 global financial crisis, announced a long position in airplane leasing company AerCap Holdings and a short position in rail car leasing company GATX Corp, which he said has higher maintenance costs and less visibility into future revenues but trades at higher multiples than AerCap.

The average hedge fund was up 5.7 percent in the first quarter, the best start to a year since 2006, according to industry publication Hedge Fund Research. Not all the investment ideas were bullish. Ryan Heslop, portfolio manager of Firefly Value Partners LP, announced a short position in rural hospital operator Community Health Systems Inc, which he said will likely go bankrupt over the next few years as its revenues per hospital bed shrinks and its debt costs increase.

The company’s “pile of debt and the declining profitability of hospitals make it almost certain that this patient will die,” he said.Laura Deming, managing director of the Longevity Fund, announced positions in biotech companies such as Precision BioSciences Inc, ALX Oncology and Navitor Pharmaceuticals that are working to extend the human lifespan by targeting specific cells and biological processes.

 

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