The Edge Group LLC

The Edge Group - Global Fundamental Catalyst Investing. The Edge provides investors with access to hidden corporate value from Global Special Situations using a pioneering approach to investments. Founded in 2005 by fund management and investment banking professionals to provide high quality, private equity-level research on Global Corporate Divestitures for the benefit of fundamental event-driven, growth and value-oriented investors in this difficult to track, but proven investment space.

The Edge will look to screen and analyze include Spinoffs; Reverse Morris Trusts; Squeeze Outs; Privatizations; Demutualization; Deep Discounted; Rights Issues; Rights Offering; Restructuring; Insider Purchases / Buying Change of Management / CEO Change; Deteriorating fundamentals; Post-Bankruptcy; Reorganization; Tender Offer; M&A Deals; Secondary Offering; Share Swap; Thrift Conversions; Share Buybacks; Activist; Mergers. All analyzed from a fundamental point of view.

 

 

Regulatory Information

  • Regulatory Status: Financial Conduct Authority (FCA)

Coverage

  • Research Category: Equity, Sector & Thematic
  • Asset Class: Equity
  • Geographic Coverage: Australia, Bermuda, Canada, Germany, Hong Kong, Italy, Norway, South Africa, South Korea, Spain, Sweden, Switzerland, United Kingdom, United States
  • Size Coverage: Large Cap, Mid Cap, Small Cap, Micro Cap, Nano Cap
  • Sector Coverage: Aerospace & Defense, Automobiles & Parts, Banks, Chemicals, Electronic & Electrical Equipment, Financial Services, Fixed Line Telecommunications, Food Producers, General Industrials, General Retailers, Health Care Equipment & Services, Household Goods & Home Construction, Industrial Engineering, Leisure Goods, Life Insurance, Media, Mining, Oil & Gas Producers, Personal Goods, Pharmaceuticals & Biotechnology, Real Estate Investment & Services, Real Estate Investment Trusts, Software & Computer Services, Support Services, Technology Hardware & Equipment, Tobacco, Travel & Leisure
  • Underlying Coverage: 67
  • Report Types: Full analysis on long and short ideas from an investment angle that presents situations that the market is missing providing multiple hidden catalyst and intelligence on global Spinoffs, Special Situations, and Stressed Credit.
  • Report Frequency: 3 reports a month
Export
Ticker Underlying First Report Latest Report
101I ZAE000004875 Nedbank Group 2018/07/03 2018/10/11
10BC ZAE000015889 Naspers Ltd. N 2019/02/15 2019/09/06
750000 DE0007500001 ThyssenKrupp AG 2018/07/09 2018/07/09
A004800 KR7004800009 Hyosung Corp. 2018/07/20 2018/07/20
A2DTEB CH0363463438 Idorsia AG 2017/06/13 2017/06/13
AAPL ARDEUT116183 Apple Inc 2017/08/10 2017/08/10
ACB CA05156X1087 Aurora Cannabis Inc 2018/09/13 2018/09/13
ACL AU000000ACL6 Alchemia Ltd. 2019/02/20 2019/03/26
AGL IT0001137345 Autogrill 2017/05/19 2017/05/19
AIMC US02208R1068 Altra Industrial Motion 2018/09/24 2018/09/24
ALV US0528001094 Autoliv Inc. 2018/06/25 2018/06/25
ARNC US03965L1008 Arconic 2019/03/19 2019/03/19
BC US1170431092 Brunswick Corp. 2018/06/21 2019/05/01
BG BMG169621056 Bunge Ltd. 2019/08/14 2019/08/14
BGCP US05541T1016 BGC Partners 2017/08/18 2017/08/18
CARS US14575E1055 Cars.com 2017/05/12 2017/05/12
CIE ES0105630315 Cie Automotive SA 2018/07/03 2018/07/03
DATA US87336U1051 Tableau Software 2016/12/22 2016/12/22
DDR US23317H1023 DDR Corp 2018/07/03 2018/07/03
DHR US2358511028 Danaher Corp. 2019/09/17 2019/09/17
DIS US2546871060 Walt Disney 2019/03/18 2019/03/18
DWDP US26078J1007 DowDuPont 2018/12/13 2019/03/27
EFX US2944291051 Equifax Inc. 2017/09/27 2017/09/27
EQT US26884L1098 EQT Corporation 2018/06/21 2018/06/21
ETN IE00B8KQN827 Eaton Corp PLC 2019/08/08 2019/08/08
FG. CA3060442074 Falcon Gold Corp 2019/02/20 2019/03/26
FMC US3024913036 FMC Corp. 2018/06/21 2019/02/28
FNF US31620R3030 FNF Group 2017/07/13 2017/07/13
FOX US90130A2006 Twenty-First Century Fox Inc 2019/03/18 2019/03/18
FOXA US90130A1016 Twenty-First Century Fox Inc 2019/03/18 2019/03/18
FTV US34959J1088 Fortive 2018/09/24 2018/09/24
GFS GB00B01FLG62 G4S 2019/01/24 2019/01/24
GPC US3724601055 Genuine Parts Co. 2018/06/21 2018/06/21
HBB US40701T1043 Hamilton Beach Brands Holding Company 2017/09/18 2017/09/18
HON US4385161066 Honeywell International Inc. 2018/09/19 2018/10/18
HPE US42824C1099 Hewlett Packard Enterprise 2017/07/11 2017/07/11
HSIC US8064071025 Henry Schein Inc. 2019/01/16 2019/01/16
INCH GB00B61TVQ02 Inchcape PLC 2017/06/09 2017/06/09
IRWD US46333X1081 Ironwood Pharmaceuticals 2019/03/29 2019/03/29
KAR US48238T1097 KAR Auction Services 2019/03/19 2019/06/19
KINV B SE0008373906 Kinnevik AB 2018/07/25 2018/07/25
LOGM US54142L1098 LogMeIn 2018/11/14 2018/11/14
LVNTA US53071M8560 Liberty Ventures 2017/06/09 2017/06/09
MET US59156R1086 MetLife Inc. 2017/07/20 2017/07/20
MRK US58933Y1055 Merck & Co. Inc. 2019/01/10 2019/01/10
NCR US62886E1082 NCR Corp. 2019/05/08 2019/05/08
NOVN CH0012005267 Novartis AG 2019/02/20 2019/03/26
NTGR US64111Q1040 NETGEAR Inc. 2018/10/29 2018/10/29
NUAN US67020Y1001 Nuance Communications 2019/07/08 2019/09/25
NVS.. US66987V1098 Novartis AG ADS 2019/02/20 2019/03/26
NWSLV AU0000NWSLV3 21st Century Fox CDI A 2019/03/18 2019/03/18
ODMUF GB00B77J0862 Old Mutual Ltd 2018/07/03 2018/10/11
ORCL US68389X1054 Oracle Corp. 2019/01/10 2019/01/10
PFE US7170811035 Pfizer 2018/08/27 2018/08/27
PNR IE00BLS09M33 Pentair plc 2017/07/21 2017/07/21
PRU GB0007099541 Prudential PLC 2019/10/10 2019/10/10
ROP US7766961061 Roper Technologies 2019/01/10 2019/01/10
SATS US2787681061 EchoStar 2019/08/30 2019/08/30
SCH NO0003028904 Schibsted A 2019/04/12 2019/04/12
SERV US81761R1095 ServiceMaster Global Holdings 2018/09/11 2018/09/11
T US00206R1023 AT&T 2019/01/11 2019/01/11
TRN US8965221091 Trinity Industries Inc. 2018/10/11 2018/10/11
UTX US9130171096 United Technologies Corp. 2018/12/21 2018/12/21
VFC US9182041080 VF Corp. 2019/05/16 2019/05/16
VNO US9290421091 Vornado Realty Trust 2017/06/13 2017/06/13
WARFY US9622574088 Wharf Holdings Ltd 2017/09/26 2017/09/26
WES AU000000WES1 Wesfarmers Ltd. 2018/10/17 2018/10/17

Analysts

  • Jim Osman

    Founder & CEO Years of Experience: 20
  • Alexander Korda

    Global Deals Analyst
  • Alexander Korda

    Global Deals Analyst
Alexander Korda

Spinoff of its UK Business 10 Days Before the Scheduled Brexit Date

After a year and a half to structure the separation, British multinational financial services player Prudential Plc (PRU LN) has timed the demerger of its declining UK & Europe asset management, M&G Plc (MNG LN), ahead of the scheduled Brexit date on Oct 31. While there won’t be any index play due to MNG’s size, short-term negatives give pause for a pre-Spin entry but will monitor the Parent post-Spin due to its high-growth US, Asia and Africa businesses. What's Happening? Chasing the growing markets in Asia and Africa, Prudential Plc (PRU LN) is separating its declining UK & Europe asset man...

Alexander Korda

Indiscriminate Selling on Spinoff Presents Early Opportunity

In an effort to boost performance and focus on its core Healthcare and Enterprise AI businesses, Nuance Communications, Inc. (NUAN) is prepared to Spinoff its Automotive conversational AI business Cerence, Inc. (CRNC) on October 1. This is another step in a series of divestitures, which have all helped in lowering NUAN's leverage and making it a more nimble entity. Meanwhile, the Spinoff company's technicals indicate a short-term return opportunity, based on dynamics in similar prior break-ups. What's Happening? Nuance Communications, Inc. (NUAN) will Spinoff its Automotive conversational AI ...

Alexander Korda

Before You Buy the IPO, Here is What You Need to Consider

By Q1 2020, Danaher (DHR) would have completed two Spinoffs in four years with the successful Spinoff of Fortive Corp. (FTV) in July 2016. However, before DHR distributes shares of its dental segment Envista Holdings Corp. (NVST) to shareholders, it will raise $602m by IPOing 17.3% of its stake this week (Sep 18th). While we have infrequently seen this play as an alternative to a straight Spinoff, when it does take place, past transactions have reflected muted returns from IPO to Spin date. Could NVST break the trend of past IPO-Spins? What's Happening? Danaher Corp. (DHR) announced in July 2...

Alexander Korda

A Higher-Margin Small Cap Spinoff Breaks the Norm

The Ensign Group, Inc. (ENSG) will complete the Spinoff of a uniquely positioned senior living and home hospice business (to be called The Pennant Group, Inc. (PNTG)) at the beginning of October, following the same playbook as a previous REIT Spin back in 2014. While PNTG will experience some initial index selling pressure as it leaves the S&P SmallCap 600 Index, it will also be a high-margin, low leverage, and asset-light business prime for a mid-term takeover in a competitive space. What's Happening? The Ensign Group, Inc. (ENSG) has outperformed the S&P SmallCap 600 Index since its 2014 Sp...

Alexander Korda

Largest EU Consumer Internet Listing Narrows Discount, So Enter Now

Having only just completed a Spinoff in March (which has returned +30% to date), Naspers Ltd (NPN SJ) will perform another break-up next week with the listing of Prosus NV (PRX NA), the largest consumer internet business in Europe comprised mainly of NPN's 31% stake in Chinese internet giant Tencent. In a unique offering, NPN is allowing investors to elect not to receive Spinoff shares and instead increase their holding in the Parent, but our analysis shows benefits in participating in the Spin. The Edge Intelligence... Not long after completing the Spinoff of its pay-TV business MultiChoice ...

Alexander Korda

Spinoff of its UK Business 10 Days Before the Scheduled Brexit Date

After a year and a half to structure the separation, British multinational financial services player Prudential Plc (PRU LN) has timed the demerger of its declining UK & Europe asset management, M&G Plc (MNG LN), ahead of the scheduled Brexit date on Oct 31. While there won’t be any index play due to MNG’s size, short-term negatives give pause for a pre-Spin entry but will monitor the Parent post-Spin due to its high-growth US, Asia and Africa businesses. What's Happening? Chasing the growing markets in Asia and Africa, Prudential Plc (PRU LN) is separating its declining UK & Europe asset man...

Alexander Korda

Indiscriminate Selling on Spinoff Presents Early Opportunity

In an effort to boost performance and focus on its core Healthcare and Enterprise AI businesses, Nuance Communications, Inc. (NUAN) is prepared to Spinoff its Automotive conversational AI business Cerence, Inc. (CRNC) on October 1. This is another step in a series of divestitures, which have all helped in lowering NUAN's leverage and making it a more nimble entity. Meanwhile, the Spinoff company's technicals indicate a short-term return opportunity, based on dynamics in similar prior break-ups. What's Happening? Nuance Communications, Inc. (NUAN) will Spinoff its Automotive conversational AI ...

Alexander Korda

Before You Buy the IPO, Here is What You Need to Consider

By Q1 2020, Danaher (DHR) would have completed two Spinoffs in four years with the successful Spinoff of Fortive Corp. (FTV) in July 2016. However, before DHR distributes shares of its dental segment Envista Holdings Corp. (NVST) to shareholders, it will raise $602m by IPOing 17.3% of its stake this week (Sep 18th). While we have infrequently seen this play as an alternative to a straight Spinoff, when it does take place, past transactions have reflected muted returns from IPO to Spin date. Could NVST break the trend of past IPO-Spins? What's Happening? Danaher Corp. (DHR) announced in July 2...

Alexander Korda

A Higher-Margin Small Cap Spinoff Breaks the Norm

The Ensign Group, Inc. (ENSG) will complete the Spinoff of a uniquely positioned senior living and home hospice business (to be called The Pennant Group, Inc. (PNTG)) at the beginning of October, following the same playbook as a previous REIT Spin back in 2014. While PNTG will experience some initial index selling pressure as it leaves the S&P SmallCap 600 Index, it will also be a high-margin, low leverage, and asset-light business prime for a mid-term takeover in a competitive space. What's Happening? The Ensign Group, Inc. (ENSG) has outperformed the S&P SmallCap 600 Index since its 2014 Sp...

Alexander Korda

Largest EU Consumer Internet Listing Narrows Discount, So Enter Now

Having only just completed a Spinoff in March (which has returned +30% to date), Naspers Ltd (NPN SJ) will perform another break-up next week with the listing of Prosus NV (PRX NA), the largest consumer internet business in Europe comprised mainly of NPN's 31% stake in Chinese internet giant Tencent. In a unique offering, NPN is allowing investors to elect not to receive Spinoff shares and instead increase their holding in the Parent, but our analysis shows benefits in participating in the Spin. The Edge Intelligence... Not long after completing the Spinoff of its pay-TV business MultiChoice ...

Alexander Korda

Persistent Weakness and Long-Term Underperformance Indicates Time for Change

Global telecom giant AT&T, Inc. (T) has consistently underperformed both peers and the index over the past two and three years, and the recently closed acquisition of Time Warner, Inc. in June 2018 has saddled the company with a total debt of $183bn (much higher than its peers). What can T do to improve its position in a brutally competitive media industry? We believe improved shareholder returns can be made through a three-way break-up. What's Interesting? The Edge Ingredients... Based on total shareholder return (TSR) for the last 1-yr, 2-yr and 3-yr annualized, AT&T has lagged all of its p...

Alexander Korda

3 Names in 2019 Prime for a Break-Up

We initially screened for three companies with potential for value creation through future break-ups, and have refreshed our views on these large-cap names. We believe they have the right ingredients for value creation but need activist involvement to help move things in the right direction, including through pushing the management to explore strategic alternatives. The Edge Ingredients... We believe identifying the ingredients for corporate change is crucial when evaluating if a given company can leverage on potential opportunities that may arise from corporate change. Continuing our previou...

Alexander Korda

Deep Value Spin With an M&A Catalyst

As we are couple of months away from 2019, we decided to look back over the last couple years of Spinoffs and release our next fallen Spinoff name that could potentially outperform the market in the longer term. The fallen Spinoff idea that jumped out to us was LogMeIn, Inc (LOGM). The Edge View... LogMeIn, Inc. (LOGM) has moved downwards by -23.2% YTD, underperforming the S&P MidCap 400 (MID) Index’s return of -0.4% as well as its industry peers’ return: Box (BOX, -10.4%), CommVault Systems (CVLT, +13.9%), FireEye (FEYE, +36.4%), Mimecast Ltd. (MIME, +25.7%), and Proofpoint (PFPT, +1.2%) dur...

Alexander Korda

Long-Term Play in FTV/AIMC Exchange Offer...With the Door Open for a Spin

Having been a Spinoff and generating a total shareholder return of 80.7%, outperforming the S&P 500’s return of 46.6%, Fortive Corp. (FTV) is separating its Automation & Specialty (A&S) business. However, instead of a traditional Spinoff, FTV shareholders have to exchange their shares to receive the Newco, which will merge via a Reverse Morris Trust (RMT) with Altra Industrial Motion (AIMC). However, there is still a chance of shares being distributed via a Spinoff. What’s Happening? Fortive Corp. (FTV) is all set to split with its Automation & Specialty (A&S) business through an exchange off...

Alexander Korda

Updated Edge Study: Trends in Announced Spinoffs in the US (2010-17)

What's Interesting? The Edge Intelligence... In an effort to find unique ideas, we have conducted a study into trends of companies that have announced Spinoffs in the United States between 2010-18. We have focused on the below key parameters to narrow down the potential ideas for companies that have announced their upcoming Spins: Market Cap; Sector analysis; Sector Landscape; Identifying Potential Ideas - Resulting from the 3-Step Analysis... In 2018, there have been 11 companies which have announced it will be doing a Spinoff, either by 2018 or 2019. Out of these, five are Large Caps, fi...

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