NEW YORK & LONDON--(BUSINESS WIRE)-- Fact: Every investor wants to beat the market. As such, a recent market first Study of Corporate Spinoffs by TSR with global advisor Deloitte proves the average Parent and Spinoff company delivers +18% and +23% a year respectively after breaking-up and separately listing. TSR are the only research firm to fully analyze and recommend to investors on the global 60-100 Spinoff stocks that are separated a year pre-event.
Market Outperformance? The research study’s findings do the best job yet at revealing exactly how the difficult to track Spinoff asset class has far outperformed the major developed market indices which investors benchmark against to prove their value. Interestingly, on average 64% of Spinoffs deliver positive returns after year one, and over a third post more than +20% performance after 12 months, the study details. (Click here to enquire?)
So how can investors benefit?
“Since the S&P500 peaked at near +20% for 2013 a couple of months ago, our research recommended client portfolio of Spinoffs has gained +110%. The S&P500 has since fallen over 20% during our period of gains”, commented, Ryan Mendy, COO of TSR, the leading global special situations advisor (www.spinoffreport.com).
Hindsight’s a wonderful thing, but with the market proving to run out of steam in Q3, smart investors not already a client of TSR and wanting proven edge on new investment ideas should take note. TSR apparently completed the study to ‘optimize’ their bottom-up analysis of future Spinoffs.
TSR’s model portfolio contains over $140m worth of ex-Parent & Spinoff stocks. It has delivered an absolute return of +85% in 68 months. That’s essentially 6 times the strong performing S&P500 and over 8x the MSCI World Index. Unlike any other independent research provider, they have maintained a live client portfolio of holdings they both issued fundamental research on and actively advised clients to invest in prior to every company separation (Spinoff).
3 Examples of Current Spinoffs?
Europe: $4bn Autogrill (AGL)
Global: $13bn Amcor Ltd. (AMC)
Source: SPINOFF REPORT