IRR: +20%

Holding Period: 3.4 Years

Portfolio Category: Special Situation


Investors with short-term investment horizons often have no patience to wait for implemented changes to “grab” in a turnaround situation. Our analysis suggested that Staples was trading at a significant discount to our estimated intrinsic value. The Company also had strong balance sheet and cash flow generation, which allows it to return capital via share buybacks and dividends to shareholders. We exited our position in May 2015 after a three-year holding period for a satisfactory return.