Philippe Laffont Sees Liberty Global/Vodafone Deal Intriguing, Shorts WWE
On Monday, Philippe Laffont spoke at the Ira Sohn Conference.
Laffont recommended to go long on Liberty Global (NASDAQ: LBTYA), as the speed of cable has increasingly progressed over fiber and DSL.
The founder of Coatue Management added that Netflix's (NASDAQ: NFLX) demand for better internet service and rapid growth will help Liberty Global in European markets. Laffont emphasized Europe's need for broadband.
He added that Liberty Global has incredible fixed costs with 100 percent incremental margins. Laffont said that he optimistic on the stock of such “an awesome business” over the next five years.
Philippe Laffont believes that AT&T (NYSE: ATT), Comcast (NASDAQ: CMCSA) or Vodafone Group (NASDAQ: VOD) could acquire Liberty Global. He said that shares could easily reach $100.00, with possible acquisitions increasing share value.
Laffont believes that a Liberty Media and Vodafone merger “will happen."
Towards the end of the presentation, he recommended shorting shares of World Wrestling Entertainment (NYSE: WWE).
Philippe Laffont is the founder and portfolio manager of Coatue Management, a global tech-focused equity hedge firm. Laffont founded Coatue in 1999 following his career at Julian Robertson's Tiger Management. He graduated from MIT is 1989 with an MS in Computer Science.
The Ira Sohn Investment Conference supports initiatives to raise funds for the treatment of pediatric cancers.
The conference gives hedge fund managers the opportunity to share investment ideas and stock picks. Speakers at the Sohn Conference this year include Michael Novogratz, Chris Shumway, Jeffrey Gundlach, Philippe Laffont, Larry Robbins, Bill Ackman, Joel Greenblatt and David Einhorn.
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