24 Apr, 2015, 02:15 ET
NEW YORK, April 24, 2015 /PRNewswire/ -- Reports from Bloomberg show between 2007 and 2015, the fundamental performance benchmark index used by funds, the MSCI World has returned investors an unsightly +0.12% growth a month vs. +1.17% from boutique corporate break-up valuation specialists, ECG (The Edge Consulting Group) to its notable following of buy-side partners.
"Timely idea generation is what makes the difference between winning and underperforming. We've proven huge gains can be made investing in select predicted spinoffs and prior to a Spinoff's maiden results," comments Ryan Mendy, ECG's chief investment officer.
Sourcing proven idea generation is tough and nervousness is setting in that the market is nearing a bubble. However, a fresh global institutional investor survey has revealed that the steaming investment class theme for value creation is corporate spinoffs and special situations.
Globally, a record 122 situations are due in the next 12 months alone. As such money managers are betting on extra performance being added to their books from the early analysis on each company.
"The companies we source for our clients are misunderstood and very liquid, but are significantly overlooked by investors who think it's safer to wait until after the listing before investing, i.e. once the Wall Street brokers have picked it up," continued Mendy.
Absolute Return Performances vs. Benchmarks (Dec 3, 2007 to Feb 28, 2015)
+3% HFRX Global Special Situations Index
+6% STOXX Europe 600
+11% MSCI World Index
+43% S&P 500
+102% ECG's Portfolio
+70% Average Returns from ECG's stocks since recommending to its subscription clients.
The global spinoff calendar has two thirds of its corporate divestitures coming from US.
ECG are advising their clients on the unrecognized value companies like the $44bn private equity house, Blackstone Group (BX) and its spinoff of PTJ Partners in Q2.
Comeback from European Spinoffs?
If you've missed the European index surge this year ECG see value in situations like the $130bn cosmetics and baking leader, Unilever (UNA NA); $31bn integrated electrical business E.ON (EOAN SE), and from International markets, the likes of Mexican telecom giant, America Movil SAB (AMXL) spinning off its cellular towers.
For any questions, go to: http://www.edgecgroup.com/#contact or call: +1 (212) 714 7046.
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SOURCE The Edge Consulting Group
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