Latticework Investor

Notes from the Value Investing Congress Twitter feed.

Paul Sonkin from Hummingbird Value Fund

• „Hummingbird focuses on Microcap Value, typically below 100 million mkt cap
• „Portfolio may have up to 200 names
• „Sonkin touts micro and nano cap value and ability to outperform
• „Conditions for micro and nano cap value like they were in 2000, huge valuation gap with growth counterparts
• „Sonkin takes rational disciplined approach to mcro/nano
• „Looks for discount to intrinsic value
• „Certainty of outcome, and how long it will take to play out also crucial
• „Focuses on smallest 40 bps of US capital markets; little analyst coverage, low trading volume, large spreads, mgmt more accessible
• „Sonkin will look at pink sheet companies that otheres wont. Many not required to file with SEC
• „Sonkin looking for internal and external catalysts
• „Sonkin presenting 3 ideas here at the VIC
• „Presenting Steinway (LVB), 3 major assets: piano business, band business, real estate…sees growth in Asia over next ten years
• „LVB piano business recovering after “nuclear winter” in US
• „Sonkin sometimes competing with companies buying back their stock, given low liquidity of typical names
• „Sonkin says LVB has pricing power, has raised piano prices 4% per year for many years
• „Says LVB properties in NY may be worth 50-75 million
• „Sonkin says most under rated document is Proxy statement…..and he won’t invest in a company if CEO wears a lot of jewelry!!