15-Jul-2015 13:05:28
NEW YORK, July 15 (Reuters) - Prominent names from the hedge fund community are speaking on Wednesday at the CNBC Institutional Investor Delivering Alpha Conference in New York. The following are highlights from their comments.
STARBOARD VALUE CEO JEFFREY SMITH ON MACY'S M.N
Macy's has a real estate value of about $21 billion, Smith said.
"More than that, they have high-valued credit card earnings of $8.5 billion. We think Macy's should be worth more than $125 a share, and buying it is a cheap proposition."
"We are willing to do whatever is necessary to increase value for shareholders. Of course, it's a lot easier to work with the management, especially if you start seeing them make changes in the right direction." (Full Story)
NELSON PELTZ, CEO OF TRIAN FUND MANAGEMENT, ON DUPONT DD.N
Shareholders' rejection of his campaign to land seats on the chemical company's board "has been a significant loss for shareholders." (Full Story)
"My question to you is, that if the election held today, what do you think the results would be?"
"We want management and the board to do a good job. We'd rather be rich than right."
PELTZ ON PEPSICO PEP.N
The beverage maker is positioned to "meet or beat earnings every quarter from here on in."
PELTZ, PERSHING SQUARE CAPITAL MANAGEMENT HEAD BILL ACKMAN ON MCDONALD'S CORP
Ackman, who was a major investor in Burger King BKCBK.UL, said that the company was in a "much worse place" than rival McDonald's Corp MCD.N is in today. Peltz said the "culture and mindset" at McDonald's "has to be turned upside down."
PELTZ, ACKMAN ON CHINA
Peltz said there was a "big consumer opportunity" in China which companies like Mondelez International Inc MDLZ.O were taking advantage of, while Ackman said of the world's second-largest economy: "long-term, I think it's a great story."
LMM CHAIRMAN AND CIO BILL MILLER ON RATES
He said a coming bear market in bonds will be "benign."
DOUBLELINE CAPITAL'S JEFFREY GUNDLACH ON MACRO ISSUES
Reiterates does not think Fed will raise rates in 2015.
Likes U.S. dollar-denominated emerging market debt, high yield bonds in short term.
Homebuilding "will never go back to where it was" but he is not negative on homebuilders.
HIGHLIGHTS-Hedge fund investors' comments from Delivering Alpha Conference