Savvy Managed Money Is Paying Attention to Stocks Aimed a Millennials
$DIA, $SPY, $QQQ, $VXX
Monday, hedge fund managers, aka Managed Money, at the high-profile 2018 Sohn Investment Conference in New York pitched stock ideas ranging from online food ordering to home-builders that should benefit from the growing influence of the millennial generation.
Millennials, a term for those born between Y’s 1981 and 1996, are expected to become the largest generation in the United States by Y 2019, according to estimates from Pew Research.
John Khoury, founder and managing partner of $2.7-B hedge fund Long Pond Capital, revealed a long position in US home-builder DR Horton Inc, which he said should see a boost as more millennials age into the 1st-time home buyer market.
The country’s largest home-builder has been increasingly focused on its entry-level segment, which it told analysts in January should grow strongly over the next 3 years.
At least 2 investors pitched online food ordering companies.
Alexander Captain, who runs Cat Rock Capital Management, introduced Dutch company Takeaway.com NV while Lin Ran, who runs Half Sky Capital, pitched GrubHub Inc , the parent company of Seamless. GrubHub averages $30/order, and it earns 15% of each order, earning the roughly 15%, while spending growth at restaurants is outpacing spending at grocery stores.
‘Millennials Do Not Cook’
DR Horton (NYSE:DHI) had more than 60% upside, and GrubHub (NYSE:GRUB) could hit $160/share, up nearly 55% from its Monday’s closing price of 102.17.
Monday, the major US stock market indexes finished at: DJIA -14.25 at 24448.69, NAS Comp -17.52 at 7128.60, S&P 500 +0.15 at 2670.29
Volume: Trade on the NYSE came in at 730-M/shares exchanged
- NAS Comp +3.3% YTD
- Russell 2000 +1.7% YTD
- S&P 500 -0.1% YTD
- DJIA -1.1% YTD
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