Articles 2018-11-13T10:38:18+00:00

Spin-Off Insights Articles

Corporate trends, activist investor activity, new management teams, former spin-offs, and general investing commentary.

Recent Articles

Spin-Off Investing Focused Articles

Overview of Spin-Off Investment Opportunities

In this article, we describe the various types of spin-off transactions, key drivers, categories, and fundamental characteristics investors need to consider.

Stock Spin-Offs Explained: Description, Rationale, Timeline, and Examples

This article describes all the important aspects of a stock spin-off, including outlining the transaction, rationale behind executing a spin-off, the timeline of events and key regulatory filings, and initial listing and trading terminology.

Characteristics of Top Performing Spin-Offs (With Examples)

Have you ever wondered why some spin-offs do extraordinarily well and others do very poorly? In this article, we investigate the key attributes of top performing spin-offs to help investors make better decisions.

Review of Historical Spin-Off Performance: The Opportunity for Active Investors

Spin-offs have historically been a very attractive area of the market for active investors. This article investigates studies from the leading academic and financial firms to shows how investors can best use this information.

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Spin-Off Characteristics: The Making of Compelling Investment Opportunities

Spin-offs are a great place for investors to look for potential opportunities. This article explores some of the key characteristics that could result in a spin-off being a compelling long-term investment.

Spin-Off Categories

Organizing spin-offs into different categories can help investors efficiently filter through opportunities to find ones that fit their investment philosophy and mandate.

Spin-Off ETFs, Indices, and Mutual Funds: What Investors Need to Know

This article investigates spin-off ETFs, Indices, and Mutual Funds to determine how they are structured and if they make sense for investors.

Key Spin-Off Drivers

Spinning off a business usually goes against company executives’ rational self-interesting of running a larger company and getting paid more. This article explores the key spin-off drivers and major stakeholders who push for change.

Types of Spin-Offs: Traditional Spin-Off, Carve-Out, and Split-Off

In this article, we describe the three main types of spin-off transactions and how the ownership dynamics, timing, and capital raising implications could be different depending on how the transaction is structured.

Company Focused Articles

PPG Industries: Trian’s Potential Investment Thesis

Introduction: On October 9th, Trian Partners filed an amended 13F which disclosed their newest investment, PPG Industries (PPG). Along with Sherwin-Williams (SHW) and AkzoNobel, PPG is one of the world’s largest coating companies. The shares have underperformed and traded [...]

October 15th, 2018|

A Deep Dive into GE’s New CEO

Introduction: On October 1st the board of directors replaced John Flannery as Chairman and CEO with Larry Culp. Culp had a great 25-year career at Danaher from 1990 -2014, including ~15 years as President and CEO from 2000 – 2014. During his tenure [...]

October 2nd, 2018|

Howard Hughes: A Growing NAV And An Aligned Management Team

Summary: Howard Hughes is an overlooked company that doesn't fit cleanly into a category for investors. They own unique assets, execute a low-risk business strategy, have an aligned management team, and are not reliant on dilutive capital raises to grow the business. Key project [...]

August 2nd, 2018|

Ferrari: The Long-Term Opportunity at this Former Spin-Off

Summary: Sadly, Ferrari's excellent CEO Sergio Marchionne has been replaced due to health issues. Despite Marchionne leaving, the company remains a case study in effective brand management with their low volume strategy while fostering a culture of enthusiasm, yet exclusiveness. If management can [...]

July 24th, 2018|

Allegion: An Overlooked, Wide-Moat Former Spin-Off

Summary: Allegion is a 2013 spin-off from Ingersoll-Rand that has benefited significantly from the separation. As a stand-alone company removed from their former conglomerate parent, the business has received much more attention, particularly in their international segments where margins have flipped from negative [...]

July 10th, 2018|