New York’s hottest young hedge funds are turning their attention towards Asian equities and airlines for the next big trade.
At Sohn Next Wave, held in New York’s Lincoln Centre ahead of the prestigious Sohn Investment conference, Chinese travel agent Ctrip, Indian telco Bharti Infratel, Japanese property company Goldstar and US airline JetBlue were the best trades touted.
Jason Karp, of $1.3 billion Tourbillon Capital Partners, could hardly contain his enthusiasm for the enormous potential of Nasdaq-listed Chinese travel company Ctrip.
As China’s middle-class grows, so does its propensity to travel. While China as a nation spends more on travel than other countries, on a per capita basis, it spends the least.
“Just imagine when the per-person spend on travel catches up,” Karp says. “There are very few companies that can give you 20 to 40 per cent growth in the past and in the future.”
Karp expects revenue for Ctrip to reach $7.3 billion in 2020, from less than $1 billion today, and says it is a Chinese version of runaway online travel stock Priceline, but with higher growth and a bigger market.
As these factors change, Ctrip’s revenue could grow by seven or eight times.
Read more: http://www.smh.com.au/
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