IT’S COM­PLI­CATED

Forbes - - Investing -

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:

DOWDUPONT

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.

EXOR

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%.

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