Spring 2013

Graham & Doddsville, issue 18 · 60 pages

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Interviews

p. 1 ↗ Preston Athey T. Rowe Price Starts on the cover, continues on p. 10
A T. Rowe Price vice president on the idea in the interview's title: holding winners longer.
Small caps Portfolio construction
p. 1 ↗ Li Lu Himalaya Capital Starts on the cover, continues on p. 24
Li Lu, a regular guest lecturer in Bruce Greenwald's class, on getting his value investing 'inoculation' from Buffett himself, intellectual honesty, and his thesis on BYD.
Companies: BYD International Asia Quality compounders
p. 1 ↗ Paul Isaac Arbiter Partners Starts on the cover, continues on p. 46
Walter Schloss's nephew on growing up around value investors, investing abroad, an illiquid idea in regional banks tied to Crédit Agricole, and the risks when the Fed stops its extraordinary support.
Companies: Crédit Agricole regional banks International Financials Macro and markets

Student pitches

p. 6 ↗ Long Motors Liquidation Company GUC Trust By David Magid 2013 Moon Lee Prize, winner
A long on the trust units left from GM's bankruptcy, built on a lien dispute David expected the court to reject.
p. 8 ↗ Long Precision Castparts By Arjun Bhattacherjee 2013 Moon Lee Prize, finalist
The Street has underestimated how well Precision Castparts deploys free cash flow and finds synergies.
p. 36 ↗ Long Hertz By Richard Hunt, Stephen Lieu and Rahul Raymoulik 2013 Pershing Square Challenge, winner
The Dollar Thrifty merger finished ten years of consolidation in car rental, which the team thought the market underestimated. About 52% upside in 12 months.
p. 38 ↗ Long Advance Auto Parts By Joe Fleury, John Gallagher and Seth Kirner 2013 Pershing Square Challenge, finalist
Trading at a big discount to intrinsic value, with a three-year target of about $165.
p. 40 ↗ Long Dollar Tree By Jeremy Colvin, Eric Lai and Akhil Subramanian 2013 Pershing Square Challenge, finalist
The dollar-store chain with 4,500-plus US stores, pitched with about 40% upside including a recap funded with debt.
p. 42 ↗ Long Stanley Black & Decker By Arjun Bhattacherjee, Rory Ellison and Colin Kennedy 2013 Pershing Square Challenge, finalist
An asymmetric risk/reward, with a $107 target.
p. 44 ↗ Long Yum! Brands By Omar Elangbawy, Ranjan Ramchandani and Andrew Woodruff 2013 Pershing Square Challenge, finalist
Steady US cash flows and a wide international footprint, with the stock held down by food-safety and avian-flu scares in China.

Also in this issue

p. 2 ↗Welcome letter
p. 3 ↗CSIMA Conference
p. 4 ↗Omaha trek
p. 5 ↗2013 Moon Lee Prize Competition