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CNH Industrial: Well-Managed Post-Spinoff RemainCo at Discount

January 13, 2022 in Audio, Best Ideas 2022, Best Ideas 2022 Featured, Discover Great Ideas Podcast, Equities, Ideas, Member Podcasts

Brian Hennessey of Alpine Woods Capital presented his in-depth investment thesis on CNH Industrial (CNHI) at Best Ideas 2022.

Thesis summary:

CNH Industrial is the newest major U.S. listed pure-play agriculture equipment company following the spinoff of its On-Highway business Iveco Group, which started trading on January 3rd, 2022.

At 10.5x next year’s estimated earnings, CNHI (the remainco) trades at a greater than 25% discount to its blue chip peers, Deere and Caterpillar. Fundamentals in the agriculture equipment industry are strong, with grain prices near historic highs, farmer balance sheets in great shape, inventory of new and used equipment at decade lows, and prices of used equipment at all time highs.

The replacement cycle in the US is arguably in the middle innings and the restocking of inventory alone should provide an underappreciated tailwind for the next couple years.

CEO Scott Wine took the helm in January 2021 after a transformational success story at Polaris Industries. The “self help” potential here is similar, with CNHI undermanaging its assets for decades. With upside to consensus estimates in 2022 and 2023 and a partial closing of the peer discount, the stock has 40+% upside to $24 per share.

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About the instructor:

Brian Hennessey began his career in high yield fixed income research at Putnam Investments, then climbed the quality spectrum to investment grade fixed income at Partner Re Asset Management, then whet his appetite in event driven, arbitrage and distressed hedge fund strategies at Tribeca Global Management (unit of Citi Alternative Investments) and Litespeed Partners. Since 2008, Brian has been at Westchester-based asset manager Alpine Woods Capital Investors LLC, currently as Co-Chief Investment Officer and manager of several long biased hedge funds focused on growth-oriented “deep moat” companies.

The content of this website is not an offer to sell or the solicitation of an offer to buy any security. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated herein.

LVMH: Owner-Operated, Time-Tested Collection of Luxury Brands

January 13, 2022 in Audio, Best Ideas 2022, Best Ideas 2022 Featured, Discover Great Ideas Podcast, Equities, Ideas, Member Podcasts

Christian Billinger of Billinger Förvaltning presented his investment thesis on LVMH Moet Hennessy Louis Vuitton (France: MC) at Best Ideas 2022.

Thesis summary:

LVMH Moet Hennessy Louis Vuitton, one of the core holdings of Billinger Förvaltning, is the type of business Christian looks for – a truly outstanding business that Billinger Förvaltning can hold for the long term.

LVMH is attractive because 1) it has a great collection of assets, 2) those assets are well-managed, and 3) the culture and governance should enable shareholders to participate in continued wealth creation for a long time.

slide presentation audio recording

About the instructor:

Christian Billinger is an Investor at Billinger Förvaltning, a family-held investment company with no external capital. The simplicity of the setup as well as permanent and patient capital provides Christian with the proper environment to pursue his strategy of identifying long term compounders.

Christian focuses first on the qualities of robustness and resilience which limit downside potential before determining the mix of returns on capital and scope for reinvestment opportunity that accounts for the upside. Often, these factors overlap with family-controlled management teams that more conservatively finance their operations.

Prior to Billinger Förvaltning, Christian worked as a European Equity Analyst for various investments funds. Before that, Christian was an associate at PwC. He holds an MS in Accounting and Finance from The London School of Economics as well as Karlstad University. He is also a CFA charterholder. He splits time between London and Sweden.

FICO: Pricing Power, Double-Digit Organic Growth, High Margins

January 13, 2022 in Audio, Best Ideas 2022, Best Ideas 2022 Featured, Discover Great Ideas Podcast, Equities, Ideas, Member Podcasts

Sahm Adrangi and Jordon Giancoli of Kerrisdale Capital Management presented their investment thesis on FICO (US: FICO) at Best Ideas 2022.

Thesis summary:

FICO is a high-quality software business trading well below intrinsic value after accounting noise and misunderstood headline risks drove a 25% contraction in its share price since the summer of 2021.

FICO’s Scores business sells the ubiquitous FICO Score, with decades of brand equity and modeling expertise leading to 90% market share of the U.S. consumer underwriting market. Steady 3-6% growth in credit markets are boosted by FICO price increases that should result in 15%+ organic Scores growth and 80% EBIT margins for the next several years.

This highly profitable Scores business has been clouded by a low-margin software division undergoing a slew of changes, including a transformation of the product platform, several non-core divestitures, and a shift in sales incentives from upfront to recurring contracts. These changes depressed FICO’s consolidated growth in 2021 and led to messy quarterly disclosures.

An ongoing transformation of the software business came in conjunction with a widely publicized customer loss to FICO’s only competitor, VantageScore. We think Vantage only poses a risk to the under-banked subprime market, a space where FICO’s Scores business has a limited presence.

As the market regains its conviction in FICO Score’s pricing power, double-digit organic growth, and 85% incremental margins, while the Software business completes its transformation into a recurring platform model, Sahm and Jordon see 30%+ upside in FICO shares over the next year.

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About the instructors:

Sahm Adrangi is the chief investment officer of Kerrisdale Capital Management, a private investment manager that focuses on value and special situations investments. Prior to founding Kerrisdale Capital Management, Sahm was an investment analyst at Longacre Fund Management, a distressed debt credit fund. Prior to Longacre, Sahm worked in the bankruptcy restructuring group at Chanin Capital Partners and the leveraged finance group of Deutsche Bank Securities. Sahm holds a Bachelor of Arts in Economics from Yale University.

Jordon Giancoli is a Partner and Director of Research at Kerrisdale Capital Management, an investment firm. Prior to joining Kerrisdale Capital Management, Jordon was a Senior Analyst and Director at Carlson Capital, a multi-strategy investment firm. Prior to this, Jordon was a Senior Associate at Ondra Partners, an M&A advisory boutique, and an Analyst at the Mergers & Acquisitions group at HSBC Securities.

Suveer Bhatia on Norton LifeLock, Thai Beverage Company

January 13, 2022 in Audio, Best Ideas 2022, Discover Great Ideas Podcast, Equities, Ideas, Member Podcasts

Suveer Bhatia of Bayard Asset Management presented his investment theses on Norton LifeLock (US: NLOK) and Thai Beverage Company (Singapore: THBEV) at Best Ideas 2022.

Thesis summary on NLOK:

Norton LifeLock is a cybersecurity solutions company, with a market cap of US$14 billion. The company was formed after Symantec sold its enterprise business in 2018 and rebranded into NLOK, which has the largest revenue market share in cybersecurity at 19%.

Global cybersecurity is an underpenetrated market, with 5% of the current five billion internet users using cybersecurity products. With growing digitization, security awareness, and heightened risk of cybercrimes, Suveer expects cybersecurity to be a growth space in the coming years. NLOK is setting itself up for success due to recent M&A, most notably a merger with Avast.

NLOK could achieve double-digit revenue growth and EPS of $3 in the next 3-5 years due to international expansion and further portfolio diversification due to M&A activity and the success of its flagship consumer product — Norton360.

Suveer also expects the company to return $6.5 billion to shareholders from FY 2023-25 if the Avast deal is completed. With a forward P/E of ~14x (March 2023E), dividend yield of 1.8%, and expected EPS growth of 18% from FY 2022-25E, NLOK appears undervalued in light of its position as a high FCF-generating market leader in an underpenetrated industry.

NLOK recently traded at $26.85 per share; assuming the Avast merger is successful, Suveer’s value estimate is just under $40 (nearly 50% upside). If the Avast merger is unsuccessful, Suveer’s value estimate is $32 (~20% upside).

Thesis summary on THBEV:

Thai Beverage Company is the largest alcohol beverage producer in Thailand, with a market cap of US$13.2 billion. Thai Beverage has 90% market share in spirits in Thailand, 40% in domestic beer (one of two major players), and 43% in Vietnamese beer through a 53% ownership of Sabeco. They derive 48% of revenue from spirits and 41% from beer; geographically, 75% of revenue from Thailand and 20% from Vietnam. Beer is their fastest growing segment.

Thai Beverage has demonstrated a resilient business model due to 80% of domestic revenue coming from off-premise sales, thus allowing them to continue growing EBIT during Covid lockdowns. They have also demonstrated EPS growth in nine of the last eleven years and have a minimum dividend payout ratio of 50%. Suveer expects earnings to compound at ~17% for the next three years due to growth in beer, cost synergies from recent M&A, and market share dominance in spirits.

The company is a long-term high performer, outperforming the Global ACWI Index and Global Consumer Staples Sector for the last one and two decades. Underperformance in the past 4-5 years, though, has created an opportunity.

The shares trade at a forward P/E of ~15x (September 2022E), EV/EBITDA of ~14x, and trailing P/B of 2.4x — significant discounts to the company’s two-year and five-year historic averages, both relative to itself and its peers. Thai Beveverage recently traded at SGD 0.66 per share; Suveer’s value estimate is SGD 0.80 per share (~20% upside).

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About the instructor:

Suveer Bhatia, CFA, began his investment career in 2018 after receiving an undergraduate degree in Business Administration from the University of Southern California’s Marshall School of Business. Upon graduating, he started working as an Investment Analyst at Bayard Asset Management, a long-only, bottom-up, concentrated, global equity fund manager based in Princeton, NJ. Suveer earned the CFA charter in August 2021 and enjoys golf, traveling, and producing films in his spare time.

The content of this website is not an offer to sell or the solicitation of an offer to buy any security. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated herein.

Vacasa: Leading U.S. Vacation Rental Property Management Company

January 13, 2022 in Audio, Best Ideas 2022, Discover Great Ideas Podcast, Equities, Ideas, Member Podcasts

John Barr of Needham Funds presented his in-depth investment thesis on Vacasa, Inc. (US: VCSA) at Best Ideas 2022.

Thesis summary:

Vacasa is the leading vacation rental property management company in the U.S. It went public via a merger with the TPG Solutions Pace SPAC in December 2021. At a recent price of ~$8.32 per share, Vacasa has a market capitalization of ~$3.6 billion, ~$580 million of cash, and annual revenue of ~$900 million.

Vacasa has been investing in new markets since 2016. The company earns higher contribution margins in markets with more than 250 units under management. The company should benefit from economies of scale; as Vacasa increases the number of units under management across its markets, corporate gross and net income margins may expand.

Vacasa has proprietary data about rental prices, demand, and property expenses, and also the data analytics capability for decision-making. Vacasa has ~6,000 operations and maintenance employees and offers good pay, benefits, and a career path for local operations staff.

Vacasa reminds John of CoStar (CSGP). In 2009, CoStar had just completed a multi-year investment program that set the company on a track to outperform for years. John believes Vacasa has an opportunity to expand margins and grow earnings as it increases density in established markets. However, a risk exists that Vacasa’s investments might not succeed.

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About the instructor:

John Barr is a Co-Manager of the Needham Growth Fund (NEEGX). He has been its Co-Manager since January 2010. He also manages the Needham Aggressive Growth Fund (NEAGX). John started on Wall Street in 1995 with Needham as a sell-side analyst following technical software companies, including electronic design automation (EDA) companies. John rejoined Needham in 2009 because of the culture, which lives and breathes growth companies and long-term investing.

From 2000 – 2002, John was a managing director and senior analyst at Robertson Stephens, following semiconductor technology companies. He was an Institutional Investor All-Star and was ranked by Reuters as leader of one of the top software teams. In 2002 John moved to the buy-side and joined Buckingham Capital Management where he served as a portfolio manager and analyst for their diversified industry long/short domestic equity hedge fund.

John’s first career was outside of Wall Street, where he spent 14 years in sales, marketing and management, primarily in the EDA industry. Working in these small companies makes him think like an owner and to look for that trait in his investments. John loves the challenge of identifying businesses with compounding characteristics and getting to know the companies over the course of years. From his industry experience, he looks to invest in companies that he would have liked to have been part of.

The content of this website is not an offer to sell or the solicitation of an offer to buy any security. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated herein.

Tredegar: Normalized Business Stronger Than It May Appear

January 13, 2022 in Audio, Best Ideas 2022, Best Ideas 2022 Featured, Discover Great Ideas Podcast, Equities, Ideas, Member Podcasts

Jeff Sutton of ValueTree Investments presented his investment thesis on Tredegar Corporation (US: TG) at Best Ideas 2022.

Thesis summary:

Tredegar Corporation is a diversified manufacturer that operates in three segments: aluminum extrusions, PE films, and flexible packaging. The company has over 65 years of consistent results, a history of making successful acquisitions and investments, and has delivered prudent returns to shareholders through a recurring quarterly dividend since 1989 and several outsized special dividends in recent years.

At recent share prices, TG trades at ~9x earnings and ~5.5x EBITDA, and the stock has an FCF yield of nearly 12% while paying a ~4% dividend.

Recent divestitures of several business lines have made the consolidated financial statements somewhat cumbersome to analyze, and the management team’s culture of seemingly near “radio silence” when communicating to investors could be confusing to the market. On the other hand, astute analysts should be able to conclude that Tredegar’s ongoing, normalized business is stronger than it may at first appear.

The company seems to be outperforming its peers from an operational perspective, with notably higher EBITDA and cash flow margins across its segments, as compared to a basket of comparable metal fabricators and plastics manufacturers. Yet, the competitors are valued higher than Tredegar.

If Tredegar were to be priced according to similar valuation metrics to its peers, the stock price could be in a range of $22-27 per share, or approximately 75%-125% above the recent stock price. Similarly, appraising Tredegar’s intrinsic value based solely on the merits of its own cash flow generation, Jeff estimates that the company has a long-term intrinsic value of $20-22 per share, or roughly 60%-80% above the recent stock price.

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About the instructor:

Jeff Sutton has over 20 years of investment experience, and has been a Chartered Financial Analyst (CFA) charterholder since 2003. In addition to his work as the Founder and President of ValueTree, Mr. Sutton is also the Chief Operating Officer of Fundamental Global, a private partnership focused on long-term strategic holdings. Prior to founding ValueTree, he worked as an equity analyst for a long-short hedge fund, as a project manager at a $1 billion family office, and as an associate at a Southeastern private equity firm. Academically, Mr. Sutton graduated summa cum laude and Phi Beta Kappa from Rhodes College with two B.A. degrees, with majors in International Business and French. He has served as a member of the Rhodes College Alumni Executive Board. He has also earned a Master of Business Administration (MBA) degree from the Darden Graduate School of Business Administration at the University of Virginia, where he was the Senior Portfolio Manager of the Darden Fund.

The content of this website is not an offer to sell or the solicitation of an offer to buy any security. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated herein.

FLEX: Sustainable Manufacturing, With NEXTracker IPO on Horizon

January 13, 2022 in Audio, Best Ideas 2022, Best Ideas 2022 Featured, Discover Great Ideas Podcast, Equities, Ideas, Member Podcasts

Alex Gates of Clayton Partners presented his investment thesis on Flex Ltd. (US: FLEX) at Best Ideas 2022.

Thesis summary:

Flex is one of the largest electronic manufacturing (EMS) firms in the world and is transitioning into a higher-margin, sustainable growth company.

Three years ago, the company hired a new CEO who instituted a turnaround plan to improve margins, customer quality, and free cash flow. Despite this repositioning, FLEX trades at less than 10x earnings, a steep discount to equally positioned peers and the market.

Renewable energy is a particular focus for FLEX. They own NEXTracker, the global market leader in solar trackers. After a delay in the IPO last year, FLEX remains committed to monetizing NEXTracker in the near term. Using similar multiples as their largest competitor Array Technologies (ARRY), NEXTracker could be worth over a third of the market value of FLEX, or $7 per share. Alex’s diligence calls with solar developers, EPC’s and advisors to sponsor equity have come back positive for NEXTracker, which could trade at a premium to ARRY in the public markets.

FLEX also has exposure to other growth sectors, such as electric/autonomous vehicles, 5G rollouts, and additional renewables (Enphase and SolarEdge are a few of many high-growth customers).

Given the high quality of the management team and the new growth/margin profile, the remaining FLEX business should trade closer to higher-value peers like Plexus. Valuing FLEX at 12x FY2023 earnings equates to a $29 stock (+60% upside), once you factor in NEXTracker. Longer-term fair value is over $40 (100+% upside), if FLEX is valued similarly to Plexus.

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About the instructor:

Alex Gates is the Director of Research and Chief Compliance Officer at Clayton Partners LLC. Founded in 2003, Clayton Partners is an opportunistic value investment firm.

Clayton manages a private investment partnership and individual separate accounts. The firm takes a private equity approach to investing in the public markets and looks to align itself with shareholder friendly management teams that focus on long-term value creation.

Alex leads the firm’s effort to find compelling public and private investment opportunities in sustainable businesses that have a positive impact on climate change. The current focus is on investments in renewable energy, bio-fuels, recycling and water infrastructure.

Alex holds a Masters Degree in Business Economics from the University of California at Santa Barbara. Prior to his graduate education, he completed a dual major BS in Economics and Statistics from Cal Poly State University. At both institutions, Alex concentrated in finance and economic modeling. He earned the Chartered Financial Analyst designation in 2015.

The content of this website is not an offer to sell or the solicitation of an offer to buy any security. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated herein.

Seritage: Misunderstood REIT Undergoing Portfolio Transformation

January 13, 2022 in Audio, Best Ideas 2022, Discover Great Ideas Podcast, Equities, Ideas, Member Podcasts

Matthew Peterson of Peterson Capital Management presented his investment thesis on Seritage Growth Properties (US: SRG) at Best Ideas 2022.

Thesis summary:

Seritage engages in ownership, redevelopment, management and leasing of a diversified portfolio of 170 mixed-use ex-Sears properties in the US.

With high cost of capital, negative cash flow, and no dividend, Seritage is an easily misunderstood REIT.

New management has provided a transparent strategy and reorganized the portfolio assets into five end use cases. Four enhance long-term shareholder value while the final use case, classified as “other”, defines $1 billion in property liquidations that will pay down debt, reduce the cost of capital, and support the development needs of high-return-on-capital projects.

The path to positive cash flow is clear and a property-by-property assessment suggests a diluted per-share value that Matt estimates at more than twice the recent share price.

Listen to this session:

slide presentation audio recording

About the instructor:

Matthew Peterson is the Managing Partner of Peterson Capital Management, which he founded in 2011. PCM manages a long term, concentrated, value base fund with a ten year annual track record of nearly 19%. He has been a financial professional for two decades, is a Chartered Financial Analyst, and has worked with Goldman Sachs, Morgan Stanley, Merrill Lynch, American Express, and Ameriprise Financial.

The content of this website is not an offer to sell or the solicitation of an offer to buy any security. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated herein.

SoftBank: Recent Controversies Create Attractive NAV Discount

January 12, 2022 in Audio, Best Ideas 2022, Best Ideas 2022 Featured, Discover Great Ideas Podcast, Equities, Ideas, Member Podcasts

Jean Pierre Verster of Protea Capital Management presented his investment thesis on SoftBank Group (Japan: 9984, US: SFTBY) at Best Ideas 2022.

Thesis summary:

SoftBank Group is an investment holding company founded in 1981 by Masayoshi Son (“Masa”). The company has gone through four distinct phases, each with a different driver of growth: from 1981 to 1996 SoftBank Group was a leading software distributor.

From 1996 to 2006 it was a pioneer of the internet, launching Yahoo! Japan and investing $20 million in a small Chinese start-up named Alibaba.

From 2006 to 2014, SoftBank Group made a bet on the mobile internet age when it acquired Vodafone Japan and, shortly thereafter, introduced the iPhone to Japan. SoftBank Group also acquired US-based Sprint, which it later merged with T-Mobile.

From 2014 to date, SoftBank Group has positioned itself as a driver of the Artificial Intelligence revolution, including launching the world’s largest technology-focused venture capital fund, the $100 billion Vision Fund. It also acquired ARM, a leader in semiconductor technology.

Marred by some recent controversies, SoftBank Group’s shares have traded at a discount of more than 50% to its net asset value recently, which offers an attractive investment opportunity.

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About the instructor:

Jean Pierre Verster is the founder & CEO of Protea Capital Management, an investment management firm headquartered in Johannesburg, South Africa. He was part of the investment team at 36ONE Asset Management, which manages the largest hedge fund in South Africa, from 2010 to 2016. He partnered with Fairtree Asset Management thereafter to launch the Protea range of hedge funds. In 2019, he founded Protea Capital Management as a stand-alone investment management business. Since 2015, Jean Pierre also serves as an independent non-executive director at Capitec Bank, the largest retail bank in South Africa by number of clients, where he is chairman of the audit committee.

The content of this website is not an offer to sell or the solicitation of an offer to buy any security. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated herein.

Discovery: Warner Deal and Strong FCF Underappreciated by Market

January 12, 2022 in Audio, Best Ideas 2022, Best Ideas 2022 Featured, Discover Great Ideas Podcast, Equities, Ideas, Member Podcasts, Transcripts

Nick Appelo of Capco Asset Management presented his investment thesis on Discovery Communications (US: DISCA/DISCK) at Best Ideas 2022.

Thesis summary:

Discovery Communications is the leading producer of unscripted video content distributed through Pay-TV bundles in the US and internationally. Discovery also reaches consumers directly through their streaming app Discovery+.

The company is in the midst of an acquisition of WarnerMedia from AT&T which will expand their business to the Turner cable networks, Warner Bros TV and Film Studio, Warner Bros theatrical films, and the crown jewel — HBO and HBO Max. Together the two companies will have a comprehensive content library and deep trove of IP, the 2nd-largest global content budget, global distribution, 100+ million DTC subscribers, the world’s most renowned production studio, and the 2nd-leading global film franchise.

Despite such a strong hand in the changing media industry, the stock has performed poorly since the merger announcement as investors wait on the sidelines for deal approval and the potential technical overhang of a spin-off. This “deal purgatory” has left the PF market cap ~$65 billion despite line-of-sight to generate $10+ billion in FCF when all of the deal synergies have been realized.

At recent prices – the PF company might be able to generate ~80% of its market cap in FCF in the first 5-6 years after the merger. Discovery CEO David Zaslav and CFO and Gunnar Wiedenfels have an excellent track record of M&A execution and synergy realization in past deals with Scripps and Eurosport. Legendary media investor John Malone serves on the board of directors, and Discovery is ~10% of his public portfolio, his 3rd-largest position. With ample FCF in the hands of capable managers and under the guidance of a hall of fame capital allocator, the prospects for creating significant shareholder value in Warner Bros. Discovery are excellent.

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About the instructor:

Nick Appelo has been a Partner and Research Analyst at Capco Asset Management since 2019. Nick has been in the Financial services industry since 2017, and previously worked in investment banking at Evercore (2017 – 2019) where he advised telecommunications and technology companies on mergers & acquisitions.

Nick is a dual graduate of the University of Florida College of Business Administration (BS in Finance 2016, cum laude, and MS in Finance in 2017). At U.F. Nick was involved with the Gator Student Investment Fund where Will serves as a board member. Nick is also a board member for the Southern Scholarship Foundation, which provides free student housing to college students from low income backgrounds.

The content of this website is not an offer to sell or the solicitation of an offer to buy any security. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated herein.
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