FORTUNE: Activist investors love spin-offs. Here’s why you should, too reveals The Edge
Jun 29, 2015
By Jen Wieczner, Senior Writer, Fortune Magazine:
The stocks spawned by corporate breakups often have rocky debuts, but many bounce back and outperform the market.
Plenty of emancipated stepchildren will be seeking investors’ affection this year. Parent companies worth a combined $1.5 trillion will execute spin-offs in 2015, more than twice the value of those that broke up in 2014, according to the Edge Consulting Group and Deloitte. Cases like AbbVie’s show why some investors see spin-offs as buying opportunities. What’s more,…