“SPIN-OFFS” EXPLAINED…

Some examples of recent spin-offs

Some examples of recent spin-offs


 

What is a Spin-off?

  • A spin-off is where a company separates a portion of its business (a division or a subsidiary) from the parent company and organises it as an independent company.  Typically, a spin-off is accomplished by distributing the shares of the new business/unit as a share dividend to existing shareholders in a tax-free transaction.  Often, this subsidiary is involved in operations that are viewed as non-core to the parent company and a spin-off is preferred to an outright sale of the division because simply selling the division can result in a large tax bill for the parent company.  In some ways, you can think of a spin-off as the opposite of a merger.  

Read the full article here

 



"Active Share"

What is it and why is it important to investors?


As an investor, you pay a fund manager to invest your hard-earned savings. You pay for their skill. But how can you measure that skill, and how do you know you’re getting value for the fees you pay? 

Read the full article here

 



Rob Campbell's Speech at an Elevation Capital Function


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Thank you for the invitation to speak this evening. Chris Swasbrook and his colleagues at Elevation are an interesting option for investors, giving investors the benefits of efficient access to some of the best global value funds in the one instance and in the second to Chris’ unique view of local and global equities. 

Read the full article here

 



Highlights from the Columbia Business School Dinner and Berkshire Hathaway Annual Meeting in Omaha, Nebraska on 4 & 5 May 2012.


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Highlights from the Columbia Business School Dinner and Berkshire Hathaway Annual Meeting in Omaha, Nebraska on 4 & 5 May 2012. 

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What are "Value Traps"


“Value trap” is a term used in the investment management industry. It describes stocks that appear cheap, but the gap between price and potential value does not close, or, worse, widens. With this Elevation Capital Insights paper we have sought to explain the concept of value traps, and how Elevation Capital tries to avoid being “trapped”.

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Sequoia Fund Annual Meeting & Short Biography of William J. Ruane


We recently attended the Sequoia Fund Annual Meeting in New York (the Elevation Capital Global Value Fund of Funds is an investor in Sequoia) and we thought it might be useful to share with our investors some insights from some of the best capital allocators in the world. The meeting was attended by a group of ~250 people where the portfolio managers and analysts proceeded to answer any / all questions that investors asked for a period of ~2.5 hours

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New Zealand Corporate Structures Must Change


As we are all too well aware the New Zealand economy is struggling from the devastating effects of two earthquakes and the excesses of a credit boom which has left us with a private-sector debt as a percentage of GDP totalling 166% as at 30 June 2010 according to The Treasury. 

We are increasingly dependant on the strength of the Crown balance sheet. Unfortunately, this does not provide us with an infinite supply of funds and comes at a significant long-term cost to us all, but particularly our children (should they choose to stay in New Zealand). 

Read the full article here