The Best Ideas from the Value Investing Congress 2011

The two day value investing congress held in Omaha, Nebraska is an important networking event that attracts some of the most prominent minds on Wall Street.

Typically focused on US equities, the stock ideas consider current events, macroeconomic conditions, and operational abilities. Not every pick ends up being a winner, but it is always helpful and interesting to understand why portfolio managers look at particular companies the way that they do.

One of the first speakers was Jim Chanos, a legendary short seller who correctly predicted Enron's downfall in 2001.

One of his primary topics of discussion was identifying value traps. One of the companies that he considers to be a value trap includes Eastman Kodak (NYSE: EK). Chanos stated that Eastman Kodak may look like a good company when you only consider the numbers, but you also have to consider restructuring charges as well as management ability. He said Tyco (NYSE: TYC) is in a similar position, but looks like a good value via acquisitions. For example, Tyco made about $20 billion in acquisitions last year and added $21 billion in goodwill to its books, making it look like a solid investment.

The next investor, Timothy Hartch of Brown Brothers Harriman, talked about valuation and various strategies depending on the type of investor. His stock pick was Dentsply International (NASDAQ: XRAY), a developer and manufacturer of dental products. Hartch cited an aging US population and burgeoning health care in emerging markets as qualitative reasons to buy Dentsply.

Hartch also mentioned that EnergySolutions (NYSE: ES) is an interesting equity. It is the largest nuclear waste removal company in the country, and has the chance to accelerate contract assignments and international growth.

The Value Investing Congress was a breeding ground for fresh ideas despite uncertain markets.

Focusing primarily on equity ideas and identifying macroeconomic trends, the attendees all took away long and short ideas to capitalize on misguided market sentiment. Retail investors who have access to the event's transcripts can also investigate the equities as well. Benzinga Pro insiders have access to all the ideas and have been able to modify their strategies based on the big hedge fund managers' recommendations.