Ariel Investments Co-Chief Executive Officer Mellody Hobson said she thinks the US will face a recession “at some point” but that it won’t cause a hard landing since businesses are financially stable and corporate balance sheets are strong.
(Bloomberg) — Ariel Investments Co-Chief Executive Officer Mellody Hobson said she thinks the US will face a recession “at some point” but that it won’t cause a hard landing since businesses are financially stable and corporate balance sheets are strong.
“No one wants a recession,” Hobson said, speaking at the Capitalize for Kids Investors Conference in Toronto. “But should it happen, I don’t see, in the US, a hard landing, or the kind of contagion that leads to real-world problems.”
Prominent hedge fund managers and some of their biggest clients have gathered at the two-day event to pitch their best trade ideas and discuss the investment outlook amid an environment of rising rates, volatile markets and war in the Middle East.
Scheduled speakers at the event include AQR Capital Management’s Cliff Asness, Elliott Investment Management’s Paul Singer, Balyasny Asset Management’s Dmitry Balyasny and Bridgewater Associates’ Karen Karniol-Tambour. For the full agenda, click here.
(All times New York)
Smith Touts Bloomin’, Algonquin Investments (3:15 p.m.)
Starboard Value co-founder Jeff Smith said Wednesday that restaurant chain Bloomin’ Brands Inc. is undervalued and boasts strong discretionary cash flow.
Bloomin’ is attractive because one of its brands, Outback Steakhouse, is experiencing operational difficulties that are causing the stock to trade at almost half the multiple of its peers, Smith is expected to say. The hedge fund firm disclosed in September that it holds a 9.6% stake in the company.
Smith is also bullish on Algonquin Power & Utilities Corp., another previously disclosed long position, because he sees value in the company’s renewables business that’s up for sale, the person said. Proceeds from that deal could be used to pay down debt, repurchase stock and boost profit.
In July, Starboard said it acquired a 7.6% stake in Algonquin.
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