“What’s changed is that the cashflow is positive, they’re going to deliver enough cars, the technology has improved and competitors are just standing in their wake.”
The need for speed – or speedy delivery – was a common theme as Mr Samway shared the stage with Antipodes Partners chief investment officer Jacob Mitchell, who outlined his case for investing in rideshare play Uber Technologies as a value-focused investor.
“We think there is a lot of misunderstanding about what Uber is. Many refer to it as a failed unicorn. This is not a concept stock.”
Mr Mitchell said the rideshare business today is larger than the taxi industry and the company had been “very efficient” in the way that it had cross-sold its Eats business.
“I think it’s great to compare Uber with other companies where the market expects a similar hockey stick growth in profitability and they are companies like Zoom, Slack – high growth SaaS [software as a service] companies that are not really making a lot of money today.
“Those stocks are on in excess of 20 times EV [enterprise value] to revenue. In the case of Uber its 2 ½ times EV to revenue. “
Pitching the idea that “luxury is the new black” Mr Samway is also bullish on prestige sports car maker Ferrari.
“This is a club for rich guys,” adding the marquee enjoyed huge loyalty and long waiting lists.
He noted the company’s resilience during the financial crisis, when its order book fell 4 per cent compared to a 40 per cent decline among other luxury car makers.
“When things go bad Ferrari owners don’t cancel because if you cancel your order they never let you back in again.”
Hyperion is also backing luxury brands LVMH and Hermes, the latter sharing similarities with Ferrari.
“This is basically the same club for women – long waiting lists, loyal customers, and rising prices,” Mr Samway said.
He said business is growing at 15 per cent a year and enjoys “terrific margins”. Top end bags sell for €30,000.
He said the iconic Kelly bag had appreciated 9,500 per cent over the past 35 years – that’s a compound annual growth rate of 14 per cent.
Microsoft was a company liked by both fund managers who highlighted its growth in enterprise products and cloud services though its Azure business.
“Microsoft on a P/E of 25 is growing faster than it’s ever grown in its history. We’re talking about a business that’s in the sweet spot,” Mr Mitchell said.
He also talked up the prospects for companies like Alibaba and Facebook.
“Social commerce has a lot of runway. Given their knowledge, the knowledge they have on users and they have the ability to personalise apps, we’re only paying 22 to 23 times for decent growth.”
He also highlighted companies like ST Micro, Qualcomm and Samsung Electronics as “enablers” of the growth in cloud services and electric vehicles.
Among global industrials, Mr Mitchell said: “Look for the ones that a secular growth stories, look for the ones where there is going to be tailwinds from decarbonisation.”
He highlighted Siemens and GE as companies that provide equipment that goes into the modernisation of the grid as we embrace battery technology.