Winter 2015

Graham & Doddsville, issue 23 · 43 pages

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Interviews

p. 1 ↗ Bill Ackman Pershing Square Capital Management Starts on the cover, continues on p. 4
Bill on what he calls the creative side of investing, with stops at Allergan and Valeant, Herbalife, Canadian Pacific, Fannie and Freddie, Zoetis and McGraw-Hill.
Companies: Allergan, Valeant, Herbalife, Canadian Pacific, Fannie Mae, Freddie Mac, Zoetis, McGraw-Hill Financial Activism Short selling
p. 1 ↗ Jay Petschek & Steve Major Corsair Capital Management Starts on the cover, continues on p. 13
The co-PMs of Corsair, an event-driven long/short firm, walk through situations including Shaw Group and Chicago Bridge & Iron, Ralcorp, Clearwater Paper and LyondellBasell.
Companies: Shaw Group, Chicago Bridge & Iron, Ralcorp, Clearwater Paper, LyondellBasell Special situations Spin-offs
p. 1 ↗ Andrew Wellington Lyrical Asset Management Starts on the cover, continues on p. 21
Lyrical's founder on how he builds a portfolio, with Avis, Hertz and AerCap among the investments he uses to show how he thinks.
Companies: Avis Budget, Hertz, AerCap Portfolio construction Deep value

Student pitches

p. 29 ↗ Short First Solar By Kirill Aleksandrov 2015 Amici Capital Prize, finalist
Kirill argues First Solar was over-earning on legacy projects and on demand pulled forward before a solar tax credit expired.
p. 31 ↗ Long JetBlue Airways By Harry Garcia 2015 Amici Capital Prize, finalist
JetBlue's returns on capital had trailed its rivals for three years. Harry's case rests on what had just started to change.
p. 33 ↗ Long Schibsted By Luke Tashie 2015 Amici Capital Prize, finalist
A 175-year-old Oslo media company turning into a leading online classifieds operator in more than 20 countries.
p. 35 ↗ Long CDK Global By Brian Waterhouse 2015 Amici Capital Prize, finalist
A classic spin-off from ADP, earning far less than its closest competitor, Reynolds & Reynolds.
p. 37 ↗ Short SolarCity By Brendan Dawson, Sisy Wang and Aaron Purcell Darden @ Virginia Investing Challenge, 1st place
A leader in solar installation whose valuation, the team argues, ignores real risks: little brand or cost advantage over peers, plus the step-down in the solar tax credit.
p. 39 ↗ Short Cardtronics By Damian Creber, Edward Reynolds and Kevin Lin Alpha Challenge at UNC Kenan-Flagler, 1st place
7-Eleven was 24% of revenue and 45% of EBITDA, and after depreciation and interest, nearly all of the profit. That contract was under attack.
p. 41 ↗ Long Progressive Waste Solutions By Matt Brownschidle, Winston Hu, Jay Ju and Steve Lin Ross Investment Competition (University of Michigan), 2nd place
US landfills fell from about 8,000 in 1988 to about 2,000 in 2014, so the ones left are worth more.

Also in this issue

p. 2 ↗Welcome letter
p. 3 ↗24th Annual Graham & Dodd Breakfast