At the 2026 Sohn Hong Kong Investment Conference, Scott Hendrickson, Co-Founder of Permian Investment Partners pitched a long equity idea. Hendrickson, whose firm was co-founded in 2008 and now manages two billion dollars of long-short and long-only equity pitched a stock he thinks will more than double. focused primarily on management change in Western Europe Hendirckson, argued that this stock is one of the most mispriced large-cap industrials in the world. His thesis rests on three pillars: a repeat CEO executing a credible margin expansion plan, an agricultural equipment cycle that has bottomed and is turning, and a discount to Deere & Company the market has no rational basis to sustain.
Before co-founding Permian, Hendrickson was an investment analyst at Brahman Capital and an associate at the private equity firm Industrial Growth Partners, and began his career as an analyst in Merrill Lynch’s investment banking program. He holds a BBA in finance from Emory University and an MBA from Columbia Business School, where he is now an adjunct professor teaching Applied Value Investing.
The Investment Case in Brief
Hendrickson framed his base case with unusual precision. Permian models the stock as a two-to-four times return over the next four years, with a base case upside of 130% and a bull case of 277% or more. The bear case, he acknowledged, is roughly flat to slightly down, but he argued the setup is highly asymmetric given how cheaply the stock is priced. The current valuation, he noted, implies that management misses the turnaround entirely, that the ag cycle never recovers, and that the company permanently remains behind Deere in every dimension. Hendrickson’s view is that all three assumptions are wrong.
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