Investor Risk Uncovered in $1.2 Trillion Spinoff Calendar, finds The Edge Consulting Group and Deloitte
NEW YORK, Jan. 12, 2015 /PRNewswire/ -- 2015's equity markets are already proving threatening on generating safe returns, now a newly released investment study reveals the guiding opportunities vs. risks posed by investors wishing to buy global corporate spinoffs.
The market first study produced by The Edge Consulting Group, a global research advisor to leading hedge and mutual funds, teamed together with the corporate advisor Deloitte, analyzed the data behind corporate break-ups (Spinoffs) and found that over the past two decades, with an average 48% return produced in the first two years from listing, spinoff value creation is not dependent on the pace of economic growth. Additionally and maybe surprisingly, that an increase in Wall Street 'big bank broker' analyst coverage had little to no impact on performance.
Conversely, the analysis has also stepped significantly beyond any research done prior in the complex asset class that has hugely benefited star investors like Mario Gabelli; revealing precisely which sectors, such as: Consumer, Energy, Healthcare, Real Estate, TMT and Utilities, have created the greatest returns for shareholders and most notably, when.
"With over $1.2 Trillion of parent companies due to Spinoff in 2015 alone, for the first time this study uncovers the best and worst investment timing in the value-maze asset class that is corporate Spinoffs," commented Ryan Mendy, COO of The Edge Consulting Group.
"We believe more than ever, asset managers need an adviser they can trust. Out track record shows we've delivered our partner funds an 8% alpha over seven years, returns that beat the market via our bottom-up research of select global catalyst value stocks; a massive advantage for intelligent value investors over dry main-street research," added Mendy.
The Edge's fundamental analysis has generated well-earned trust among global asset managers they service. Mostly respected for their 'straight talking servicing and recommendation attitude' as they focus purely on the misunderstood (over-looked) edge in every upcoming company on their calendar of both announced companies and those that they predict certainly can do a valuable Spinoff, and not just in the US.
But clearly, with this studying finding 40% of spinoffs don't make money in the first year, possessing timely analysis recommending which entity could hatch the 'greatest value and what it'll take' seems more key than ever.
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SOURCE The Edge Consulting Group
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