(Bloomberg) — Though China’s economy is in a period of transition, the country still offers investment opportunities, Oaktree Capital Management LP’s Howard Marks told attendees at the annual Sohn Australia conference in Adelaide on Friday.
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“Chinese equities are way down and underperforming, and in general, our bias is toward buying things that are on the bargain heap,” Marks said, according to the Australian Financial Review. He also said he expects the post-election rally in US stocks to continue.
Read: China’s Stock-Trading Craze Foreshadows Another Bullish Run
Meantime, Northcape Capital Pty’s Fleur Wright tipped Estée Lauder Cos. as her stock pick, saying the beauty company’s stock is primed for a rebound.
Investors have eight minutes to pitch their top ideas to the audience gathered in the South Australian capital. Previous speakers include Ray Dalio, Cathie Wood and Bill Ackman.
Here’s what people are tipping at Sohn Australia:
IFM Investors, Bannan
Corporate Travel Management Ltd.’s shares jumped as much as 4.6% in Sydney after IFM Investors fund manager Rikki Bannan pitched the stock at the conference.
The firm “has in the last 18 months missed expectations on three occasions, shaking the market’s confidence in its outlook,” although the travel services market has stabilized, she said, the AFR reported.
Bannan recommended Australian biotech firm Telix Pharmaceuticals Ltd. at the 2023 event. Its shares have more than doubled this year.
JO Hambro Capital Management, Mehta
JO Hambro Capital Management Ltd.’s Samir Mehta pitched Tencent Music Entertainment Group on its buybacks and earnings growth. Its US-listed stock is up 20% year-to-date.
“Generating cash and buying back stock is not something that you associate with Chinese companies, but there’s been a big change in attitude in many of them,” he said, according to the AFR. China’s music streaming market has huge potential, Mehta added.
Scalar Gauge, Gautam
Scalar Gauge portfolio manager and founder Sumit Gautam touted US-listed accounting software firm BlackLine Inc., as he’s upbeat on the company’s growth outlook as a market leader in the space. BlackLine shares are down 3% this year.
Ellerston Capital, Kourtis
Ellerston Capital Ltd.’s Chris Kourtis picked Australian fund manager Perpetual, saying it holds the largest position in his portfolio. Kourtis cited new management, a cheap valuation and KKR & Co.’s plan to buy the company’s wealth management and corporate trust units as reasons for his bullishness on the stock. The shares gained as much as 3.7% in Sydney trading.
