Superinvestors and Stock Spin-offs
Joel Greenblatt
“You can make a pile of money investing in spin-offs. The facts are overwhelming. Stocks of spin-off companies significantly and consistently outperform the market averages.”
– Joel Greenblatt, Founder of Gotham Capital, Generated 50% returns annually for a decade
Seth Klarman
“Spin-offs often present attractive opportunities for value investors.”
– Seth Klarman, Founder of Baupost Capital, Legendary Value Investor
Charlie Munger
“Carefully study spin-offs.”
– Charlie Munger, Billionaire investors and right hand man to Warren Buffett
Select Stock Spin-off Studies
Study #1
A J.P.Morgan study of 231 spin-offs and carve-outs between 1985 and 1998 found that during the first 18 months of trading, spin-offs outperformed the S&P 500 by 11.3% while carveouts outperformed by 10.1%
Study #2
In 2013, Credit Suisse took a fresh look at the performance of spin-offs. They analyzed spin-offs from 1995 to 2012. The study showed that spin-offs outperformed the S&P 500 by 13.4% in the first 12 months after the spin-off date.
Study #3
Deloitte and the Edge Consulting Group analyzed spin-offs that occurred between 2000 and 2014. They found that spin-offs generated a 22% return in their first 12 months of trading, outperforming the MSCI world index by 21%.
Study #4
In May 2018, we analyzed the returns of the Bloomberg U.S. Spin-off Index vs. the returns of the S&P 500. We found that the Bloomberg U.S. Spin-off Index generated a 511% return from December 2005 to May 2018, outpacing the S&P 500 by 314%.
Recent Members Only Research
ATMU – Atmus Filtration Spin-off Deep Dive – February 20, 2024
UNTC – Unit Corp to Pay $22.50 in Dividends – December 11, 2023
MURA -Mural Oncology Spin-off Quick Thoughts – November 17, 2023
NATL – NCR Atleos Spin-off Deep Dive – November 6, 2023
GMAA – Buy Gama Aviation – November 2, 2023
GTX – Garrett Motion Q3 ‘23 Results – October 25, 2023
IDT – Updated Investment Case – October 19, 2023
VSTS – Aramark Spin-off (Vestis) Deep Dive – October 11, 2023
VLTO – Danaher Spin-off (Veralto) Deep Dive – September 29, 2023
GEHI – Buy Gravitas Education – September 27, 2023
KVUE – Updated Thoughts on Kenvue – August 29, 2023
JNJ – Buy JNJ – JNJ/KVUE Exchange Offer – Special Situation – July 25, 2023
PHIN – PHINIA Spin-off Deep Dive – June 30, 2023
TSVT – Buy 2seventy bio – June 14, 2023
NXDT – Sell NexPoint Diversified – June 1, 2023
APVO – Sell Aptevo – June 1, 2023
NLTX – Sell Neoleukin – April 21, 2023
MSG Entertainment Spin-off Deep Dive – April 12, 2023
Crane Spin-off Deep Dive – April 6, 2023
iStar / Safehold Merger & STAR Spin-off Deep Dive – March 25, 2023
FTAI Spin-off Deep Dive – August 2, 2022
Glaxo-Pfizer Haleon Spin-off Deep Dive – July 15, 2022
Constellation Software Spin-off (Topicus) Deep Dive – January 30, 2021
Verint Spin-off (Cognyte) Deep Dive – January 28, 2021
Maxeon Solar Spin-off Deep Dive – August 30, 2020
Smith & Wesson Spin-off (American Outdoor Brands) Deep Dive – August 14, 2020
Allgeier SA Spin-off Deep Dive
Carrier Corp Spin-off Deep Dive
Arconic Corp Spin-off Deep Dive
Ensign Group Spin-off (Pennant) Deep Dive
Nuance Spin-off (Cerence) Deep Dive
Performance of Recommendations
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