Spin-Offs Outperform, But Only If You Get In EarlyRupert Hargreaves
Spin-offs are well-known as one of the situations where value can easily be found. Spin-offs offer value because they are usually underappreciated by the market. Large funds which own a stake in the parent may find themselves having to sell off the smaller spin-co as it breaches investment rules. What’s more, during the first few quarters of the spin-cos life, fundamentals tend to be difficult to understand, and the likely of a mispricing is, therefore, greater.
exclusively for paying members. Access all of our content on including years of timeless investment news and in depth analysis for only a few dollars a month by signing up here while also supporting quality content and journalism, or learn more about our premium content here
If you are subscribed and having an account error please clear cache and then cookies if that does not work email email@example.com and we will get back to you as quick as humanly possible