Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.


Spin-Off Investor (https://www.spinoffinvestor.com) publishes the results of its groundbreaking, 15-year research study in the book, “ALPHA FOUND: Understanding Corporate Spin-Offs and How to Trade Them for Maximum Profit.” These results are the foundation and proof for the Spin-Off Investment System™ (the “System”), a proprietary methodology developed by company Co-founders Geoffrey Hossie and Paul Cuatrecasas.

figure-1Spin-Off Investor’s research study describes how, over the course of the last few years, three former hedge fund professionals created, designed, back-tested and optimized a proprietary investment system covering US corporate spin-offs occurring from January 1, 2000 to April 30, 2015. Strikingly, the System on a synthetic basis delivered an average annual return of 29.5% versus only 6.0% for the Russell 2000 Total Return Index and 9.0% for the Guggenheim Spin-Off Exchange Traded Fund – and with lower volatility (see Figure 1). The System employs an optimized use of stop-losses and position sizing, as well as leverage to maximize the return-to-risk dynamic. During the 15-year period covered by the research, the maximum gross exposure was 2.0x and the average gross exposure was 0.9x.

“We believe the Spin-Off Investment System™ represents a breakthrough for disciplined individual investors looking to generate long-term investment returns that may significantly exceed the returns achieved by most institutional investors with similar – or even less – risk,” explains Cuatrecasas.

According to their research and that of others, the back-tested annual results of the Spin-Off Investment System™ over the study period are consistently well above all but the most successful professional investment managers and exceed the returns available from over 90% of all mutual funds, hedge funds, exchange-traded funds and CTAs over the same period.

“Over 50 years of peer-reviewed academic and investment banking research have demonstrated the excess returns available, in the aggregate, from investing in a portfolio consisting of corporate spin-offs,” adds Hossie. “However, the challenge to alpha-seeking spin-off investors is to answer what we call the ‘Seven Key Questions’ for successful spin-off investing, such as: ‘Which spin-offs should I buy? Should I buy the parent company, too? How long do I hold the investment?’ Most importantly, we consider what stop-loss and position size to use in the portfolio to optimize the reward/risk equation.”

Hossie and Cuatrecasas have ambitious plans for Spin-Off Investor, including a bi-weekly newsletter covering the investments of the System, as well as launching a real-time Portfolio Update Alert Service available to investors who wish to track the System’s trades. Looking ahead, the duo hopes to expand their research to cover spin-offs worldwide, equity market hedging, and refined security selection parameters to be used by the System.