A few weeks ago we highlighted Mohnish Pabrai’s S&P crushing Spinoff Portfolio. While the historical results were merely backtested, 2018 has gotten off to a tremendous start. Despite a big decline at Adient (ADNT), the fund was boosted by General Dynamic’s (GD) ~$9.6b (including debt) takeover of government IT services provider CSRA (CSRA). The deal is actually an all cash… Read More »
It’s a new year (relatively speaking at this point) and some readers are likely evaluating their investment strategies for 2018. If you can stomach a healthy dose of volatility then Mohnish Pabrai has just the thing for you – a concentrated portfolio of spinoffs! For those wondering, Mr. Pabrai founded both the Dhando Fund and Pabrai Investment Funds… Read More »
Columbia Business School publishes an investment newsletter featuring ideas from students and interviews with asset managers. The Winter 2017 edition of the aptly titled Graham and Doddsville was just published and it features a conversation with the managers (incidentally both alums) of Kingstown Capital, a value oriented, special situations focused fund. The interview includes the G&D standard ‘how did you… Read More »
Johnson Controls (JCI) completed its inversion deal/merger with Tyco in early September creating a powerhouse in building solutions for efficiency and fire and safety. With the merger complete, the company can now complete the spinoff of its non-core automotive and interiors business, Adient. The spin was announced way back in 2015, but rumors of a spin existed even earlier.… Read More »
Shareholders at both Johnson Controls (JCI) and Tyco (TYC) overwhelmingly approved their upcoming merger at their respective special shareholder meetings last week. At JCI, the approval came in the fact of a shareholder lawsuit challenging the company’s executive pay (JCI CEO Alex Molinaroli is making out like a bandit in this deal) and other facets of the deal.… Read More »
After discussing the importance of a spinoff’s tax free nature the other day, of course, there is a big spinoff on the horizon which will be treated as a taxable dividend for shareholders. Due to complications arising from its merger with Tyco (TYC), Johnson Controls’ (JCI) automotive and interior business spinoff will indeed be taxable upon its separation… Read More »