Spin-Off Trading Strategy: What Is It And How Does It Perform? (Rules, Backtest)
Spin-offs are a popular corporate action that company management and boards may pursue to unlock value or narrow down their focus. Many famous investors, such as Joel Greenblatt, Seth Klarman, and Charlie Munger, have voiced their support for spin-offs as sources of investment ideas. In this article, we look at how a spin-off trading strategy…