We Asked Investment Pros Their Best Ideas

Dec 29 2014 | 5:40am ET

Gilles Sitbon
Senior Fund Manager
Sycomore L/S Opportunities Fund

What was your best investment idea in 2014?

Micron, a memory semiconductor play. The company has benefited from industry consolidation and hence better capex and pricing discipline, an improving PC market and still positive smartphone demand. Stock performance has been very strong in 2014, supported by quality investors’ sponsorship and better FX (weak yen). The shares are up 7x since we initiated our position back in late 2012. Despite that, the valuation remains undemanding (less than 10x fully taxed fy15 earnings). Micron is a core position in our Sycomore Long Short Opportunities Fund.

What are you bullish on for 2015?

We are bullish for 2015 on European equities on low participation rate and lack of positioning. As much as it was consensual to be long Europe in early 2014, the opposite is also very true today. However better FX (weaker euro), low rates, low commodity prices and abundant liquidity (from the ECB) are all supportive of EU shares. In our Long Short Opportunities fund, a portion of the long portfolio favors export companies or those with significant revenues in U.S. dollar-driven regions or operations such as Airbus, Compass. On a single-name basis, we are bullish on IMCD, a Dutch mid-cap, leading distributor of specialty chemicals and food ingredients, for its organic growth and external growth prospects.

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