Evermore Global’s David Marcus hunts for breakups, restructurings and spino s whose complexities yield bargains. Running Evermore’s $684 million (assets) Global Value Fund, he traverses the world for misunderstood
or underperforming companies where positive reorganization is afoot. His fund has returned 10.9% over the last five years.
Two top picks:
A year ago, Dow Chemical tied up with Dupont. “This is a new phenomenon, ‘merge to break up,’” Marcus says of CEO Ed Breen’s plan to split the combined firm into three public companies. Recently trading near $70 a share, the pieces, Marcus believes, are worth at least $100; he speculates Breen might then chop Dupont into multiple parts as well.
This Italian conglomerate
(“a compounding machine”) owns reinsurer
Partnerre and soccer power Juventus, plus large stakes in the Economist, Ferrari, Fiat and CNH.
Marcus sees value, especially for Fiat, which is spinning o its auto-parts business, Magneti Marelli. In 2017 Exor’s net asset
value rose 57%.