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Strategies & Market Trends : Value Investing

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To: Sean Collett who wrote (73866)	10/5/2023 1:53:38 PM
From: Spekulatius	Read Replies (1) of 78681

The issue is that the last few years, spinoffs have underperformed as a group. Check out this study: twitter.com focusedcompounding.com So I think the market inefficiency that Greenblatt observed has disappeared or even reversed (meaning that spinoffs as a group now underperform). Interesting enough, even the mother company tends to underperform now. This means that people either try to front run spinoffs (which means there are too many people investing in them) or that they are an indication of management pushing boundaries with optimistic assumptions that fail to materialize.

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