The Ira Sohn Investment Conference brings together prominent hedge fund managers to share their investment ideas in a venue that helps raise funds for a charity that focuses on the treatment of pediatric cancers. In past years, some of the investor presentations have moved markets, including the jarring critique of Lehman Brothers that David Einhorn of Greenlight Capital promoted at the 2008 conference. Often times, the investment cases don’t succeed. Some of the speeches are leaden, numbers-heavy treatises, while others are merely a chance for certain investors complain about all that is wrong in the world.
Monday’s conference includes Mr. Einhorn, William A. Ackman of Pershing Square, Jeffrey Gundlach of DoubleLine and Paul Tudor Jones, one of the first people to make a fortune as a hedge fund manager. DealBook’s Peter Eavis and Alexandra are reporting from the conference. DealBook is covering the Sohn conference live.
Conference organizers, trying to strictly enforce the time limits, play the “Jaws†score over Mr. Shumway’s presentation to force him off the stage as he was finishing up a bullish case for Moody’s, the ratings company.
â€" Peter Eavis
Chris Shumway of Shumway Capital presents the “Hammered Index†made up of the worst-performing stocks so far this year, including growth companies like Amazon. They had high valuations that the market was going to find it hard to support once doubts crept in. The biggest concern is China, Mr. Shumway said.
The issue in China is simple: Credit growth is not sustainable. He recommends shorting the Chinese yuan through a financial instrument called forwards.
Mr. Shumway’s thesis is that a cheaper currency is a way for the Chinese government to bolster growth without creating more problems in the banking sector.
â€" Peter Eavis
