How Altimeter’s Gerstner Views Value Versus High-Flying Growth Stocks

From CNBC — go to the original.

Kyle’s notes while reading/watching, verbatim from the Roam daily note.

Notes

• Watched How Altimeter’s Gerstner views value versus high-flying growth stocks with Brad Gerstner at Altimeter Equity Research
• {{youtube: https://www.youtube.com/watch?v=JRNaIMRGoII}}
• Starting to short low quality software and internet names
• Fed went in with balance sheet, rates were at 0%, covered their shorts
• Multiples expanded pretty dramatically
• “Half of the market has been uninvestable this year. You weren’t buying airlines, hotels, or travel companies.”
• Dollars will move out of tech and revert to the mean for the 10-year and 30-year; normalization of tech multiples
• If multiples expand by 40% and you’re not adjusting your portfolio you’re not effective at Risk Management
• 10-year is 90% of its lows
• Snowflake ($SNOW)
  • Would have never predicted 180 days ago that the Fed did its job, tech companies kept us running, great voter turnout, and now vaccine is delivering
  • Techification of the enterprise has been drastically accelerated
  • The connective tissues that they’ll provide is huge
  • “When you’re evaluating a business growing over 100% you should look at the multiple 3 years down the road compared to slower growers today.”
• Difference between trader vs. investor
  • Tiffany McGhee bought $DOCU, $CRM, $NOW
  • Focused on long-term investor
  • You should have a wish list and a deliberate plan to buy
  • A lot of these companies that have benefitted from COVID have already corrected because their earning power has increased (e.g. we’re almost back to the pre-COVID P/E multiples, even on things like Zoom)
• Raised an SPV to buy things like Uber ($UBER), $EXPE, $UAL and that fund is up 100% now