Happy New Year to all of our readers! 2018 is now officially history and it will be remembered as a year of increased volatility that ultimately left some portfolios quite damaged. That includes Mohnish Pabrai’s Spinoff Portfolio and its (backtested) historically S&P crushing results. Pabrai is a legendary fund manager and author of The Dhando Investor. In one of… 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 »
There are a number of spinoffs scheduled to be completed at the end of this month (October) or in early November and naturally, there are a few scheduled changes to the S&P indices as a result. Here is a summary of the changes which will occur over the next week or so: HCP Inc (HCP) is spinning off Quality… 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 »