Best Ideas from the Harbor Conference: Kingdon, Locust Wood, Blackstone

NEW YORK (TheStreet) - At the Harbor Investment Conference on Wednesday, Philip Hilal of Kingdon Capital Management pitched Energy Transfer Equity (ETE), Stephen J. Errico of Locust Wood Capital Advisers spoke about NorthStar Realty Finance (NRF), Liberty Interactive (LINTA) and WMI Holdings and Blackstone's Jonathan Gray explained the PE giant's push into U.S. real estate.

Kingdon's Hilal said he believes Energy Transfer Equity is undervalued and will benefit as a general partner to daughter limited partner interests in Energy Transfer Partners (ETP), Sunoco Logistics Partners (SXL) and Regency Energy Partners (RGP). Meanwhile, Hilal said he believes a coming spinoff of Energy Transfer's Lake Charles export terminal in Louisiana into a master limited partnership (MLP) structure may not be fully appreciated by public stockholders.

The hedge funder valued Energy Transfer Equity at $60 a share, about 50% above current trading prices given organic growth forecasts at the company's daughter MLP interests.

Stephen Errico of Locust Wood Capital presented three stock picks: Northstar Realty Finance, Liberty Interactive and WMI Holdings. He said Northstar Realty's prospective spinoff of its asset management arm isn't being fully appreciated by investors. Meanwhile, Errico said he believes the firm's healthcare real estate investment trust, run by Jay Flaherty the former head of Healthcare Partners, may become far larger than the market expects.

Errico said he believes the healthcare REIT could raise over $2 billion, presenting opportunity for investors.

Regarding John Malone's Liberty Interactive, Errico emphasized the company's prospective spinoff of QVC into a tracking stock as an opportunity for investors. QVC, which allows consumers to shop at home, may garner better valuation multiples and more analysts coverage as an independent publicly traded company, Errico said.

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