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US hedge funds target value in TSR special situations and spinoffs

May 29, 2013 at 2:19 pm

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A recent 2013 survey of US wealth managers by adviser TSR reveals that underlying hedge fund investors do not want to be left behind in a flourishing market, and as such are willing to take on slightly more risk for increased performance.

TSR returned clients +23 per cent in 2012 and +80 per cent the last five years. According to TSR, fund chief investment officers are using the firm’s expertise and in-depth research on the c100+ special situations and corporate spinoffs they uniquely source.

“We’ve generated average returns of +44 per cent over the last five years from the 100+ investments in Spinoffs we’ve fully analysed pre-breakup,” says Ryan Mendy of TSR.

In short, this involves finding, analysing and buying stocks where the fundamentals are notably strong, a misunderstood corporate change/action is due in the near-future, but the company is under-covered by Wall Street banks and thus mis-priced.

Mendy says: “Investors want fund managers to put their money to work. With an increased analyst team, we give CIOs the qualified research and ideas they need to improve performance.”