Institutional Research Group

The Institutional Research Group (IRG) was formed in January of 2008 to produce investment research focused on "special situation" investments, with a focus on spin-off transactions. IRG collaborates with Murray Stahl and Steven Bregman of the Horizon Research Group in the production of The Spin-Off Report and The European Spin-Off & Restructuring Report.

Hidden Opportunities

Hidden Opportunities provides in-depth analysis of U.S.-listed small-cap companies that present a compelling sum-of-the-parts valuation with a potential future catalyst. This is a unique approach based on a proprietary dataset resulting from over two decades of providing detailed spin-off analysis to institutional investors. The service aims to present these situations to clients long before such value-unlocking events are evident in the marketplace and reflected in the share price. Sum-of-the-parts valuation metrics on each company are dynamically updated daily, with investment recommendations published when the market presents an opportunity to purchase these assets with significant margins of safety.

In addition to the 12 to 15 comprehensive recommendations published each year, clients also receive the monthly Radar Screen. The Radar Screen highlights an additional 15 to 20 companies each month that are potential candidates for a breakup or restructuring. This report provides 1 to 2 page summaries of each situation, and covers a wide range of potential restructuring stories with varying degrees of upside potential. Often companies that become topics of comprehensive reports will make their initial appearance in the monthly Radar Screen.

sample research

Feb 4, 2016
Harsco Corp.
Jan 4, 2016
Headwaters Inc.
Sep 3, 2014
Computer Sciences Corp.
Nov 1, 2013
Gannett Co.

The Spin-Off Report

The Spin-Off Report monitors the progress of all U.S. spin-offs from announcement date through when-issued trading, and continues coverage through the first quarter of trading. The Spin-Off Calendar, published monthly, monitors the status of every pending transaction, and “Flash” reports are published to inform clients of new spin-off announcements and any significant developments with spin-offs in queue. The service provides comprehensive research reports with fair value estimates on both the spin-off and parent company prior to divestiture. The Spin-Off Radar Screen, also published monthly, provides an overview of companies determined by our analysis to be potential spin-off candidates. Clients also receive the Bits & Pieces report; a monthly supplement to the service that identifies mispriced stub securities, tracking stocks and other arbitrage opportunities. The Spin-Off Compendium provides Murray Stahl with an effective forum to discuss the market environment for spin-offs as well investment ideas outside the traditional spin-off space, such as carve-outs, tracking stocks, and spin-offs that have fallen out of favor with investors.

Additionally, all subscribers to the Spin-Off Report receive access to our web-based spin-off tracker, which provides an updated and concise view into the entire spin-off pipeline from announcement, through the when-issued period and into regular way trading.  The share prices for parent companies and spin-offs are displayed for each transaction, compared to our fair values and shown as trading at a discount or premium.

sample research

Sep 13, 2016
Honeywell International Inc.
Mar 16, 2016
Armstrong World Industries Inc.
Oct 30, 2015
Darden Restaurants, Inc
May 18, 2015
Masco Corp.
Nov 20, 2012
November 2012 Spin-Off Report Compendium
Jul 26, 2012
Comverse Technology Inc.
Jun 1, 2012
June 2012 Spin-Off Report Radar Screen
May 8, 2012
Alexander & Baldwin Inc.
Jan 1, 2012
January 2012 Spin-Off Report Calendar
Sep 28, 2011
General Growth Properties, Inc.
Aug 19, 2011
Marriott International Inc.

The European Spin-Off & Restructuring Report

The European Spin-Off & Restructuring Report provides comprehensive coverage of every European spin-off situation, as well as other restructurings and special situations. Coverage may include carve-outs, minority stake distributions, as well as non-divestiture situations such as activist led-turnarounds and management changes. Coverage of each spin-off begins upon announcement and continues through the first quarter of trading. Within several hours of a spin-off announcement, a summary and initial valuation report is published. A comprehensive analysis of each spin-off is typically published months before the share distribution occurs, providing fair value estimates for the pre-spin company and each entity after distribution. A monthly Calendar monitors the status of every pending spin-off as well as other situations under coverage. The Compendium provides an effective forum for Murray Stahl to discuss these situations, and broad investment themes. The European Radar Screen, also published monthly, provides an overview of European companies determined by our analysis to be potential break-up candidates.

sample research

Jun 10, 2013
Sociedad Matriz SAAM S.A.
Mar 28, 2012
Compania Sud Americana de Vapores S.A.
Jul 12, 2011
Aker Solutions ASA / Kvaerner ASA
Jun 8, 2011
Haldex AB / Concentric AB
May 23, 2011
PostNL N.V. / TNT N.V.
Oct 6, 2010
UTS Energy / Silverbirch Energy