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 Research
Colin King of Circle City Capital Group Talks Magnera (MAGN) – December 9, 2024
Kingdom Capital Talks Spin-offs (NLOP, CURB, and MAGN) and Street Hockey – November 14, 2024
3 Spin-offs That Will Benefit from a Trump Presidency – November 7, 2024
ECG, MAGN/GLT, SNRE – Upcoming Spin-off Webinar – October 31, 2024
5 Takeaways from the Everus Analyst Day – October 19, 2024
Buy Western Digital. Spin-off to Unlock Value – October 16, 2024
SITC – Update Thoughts on SITC RemainCo – October 7, 2024
AMTM/CURB/SOBO – Spin-off Investor Survey – October 3, 2024
AMTM, CURB, SOBO – Upcoming Spin-off Webinar – October 3, 2024
AMTM/CURB/SOBO – Upcoming Spin-off Webinar – October 1, 2024
AMTM/J – Amentum Spin-off and Jacobs RemainCo Deep Dive – September 26, 2024
How to Profit from Demerger Arbitrage – September 23, 2024
EHAB – Revisiting Enhabit – Close But Not Quite There – September 18, 2024
Spin-off Podcast Interview – September 12, 2024
SITC/CURB, 6 Takeaways from Curbline’s Form 10- September 11, 2024
IDT Corp – Meeting with the Company – September 10, 2024
Joel Greenblatt Explains Options Prices – September 4, 2024
GTX – 3 Catalysts that Will Drive GTX Higher – August 27, 2024
“Do you trade when issued spin-offs?” – August 26, 2024
HGHAF – An Update on High Arctic – August 23, 2024
Notes from My Conversation with LION IR – August 19, 2024
3 Spin-offs with Insider Buying – August 15, 2024
What’s the Big Deal? – August 7, 2024
HHH – Buy Howard Hughes – July 31, 2024
HHH/SEG – Howard Hughes RemainCo Overview, Strategy, and Valuation – July 31, 2024
Is the Small Cap Rally Just Getting Started? – July 25, 2024
How Mohnish Pabrai Made 30x on an Investment in Turkey – July 18, 2024
TRP – Initial Thoughts on Upcoming TC Energy Spin-off – July 16, 2024
AFCG/SUNS – Quick Thoughts Ahead of Sunrise Spin-off – July 8, 2024
MEDXF – Medexus FQ4 2024 Results + Notes from Call with Management – June 28, 2024
GRAL/ILMN – Will the Grail Spin-off Unlock Value? – June 20, 2024
SIRI/LSXMK – Is There an Opportunity in LSXMK? – June 4, 2024
DHR – The Founding of a Spin-off Machine – May 29, 2024
Performance of Recommendations
Additional Spin-off Analysis
Podcast: Chris Waller of Plural Investing and Hidden Gem Investing
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Podcast: Colin King and I Discuss NATL, AMVO, and SOLS
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