NEW YORK Feb 13 Shares of newly formed company
CyrusOne should drmatically climb higher in the next
year as the world's voracious demand for data storage increases,
a prominent hedge fund manager said on Wednesday.
The company has the highest return on assets and the highest
consensus revenue growth compared with its peers, Mick McGuire
who runs $1.1 billion Marcato Capital Management said at the
Harbor Investment Conference. But he also noted that the
company, which owns 23 data centers in Texas and Ohio, is
trading at a lower multiple than its peers.
Looking ahead one year, McGuire, whose fund ranked among
last year's very best perfomers with a roughly 29 percent gain,
said CyrusOne's share price could be as high as $34.60. The
company's share price is currently trading at $22.19.
"We see a long running opportunity here," McGuire said at
the conference which also featured investment ideas from
Pershing Square Capital Management's William Ackman and Blue
Mountain Capital's Andrew Feldstein.
McGuire also spoke about Prosafe SE, a Norwegian
company, in which the hedge fund owns a stake but has not
discussed publicly or disclosed on its public filings because it
is a foreign company.
The company builds hotels on oil rigs and is seeing strong
demand that is not driven by oil exploration or production or
the price of oil, McGuire said.