The economic climate is ripe for another golden age ofshareholder activism
Deep Value: Why Activist Investors and Other ContrariansBattle for Control of Losing Corporations is a must-readexploration of deep value investment strategy, describing theevolution of the theories of valuation and shareholder activismfrom Graham to Icahn and beyond. The book combines engaginganecdotes with industry research to illustrate the principles andmethods of this complex strategy, and explains the reasoning behindseemingly incomprehensible activist maneuvers. Written by an activevalue investor, Deep Value provides an insider's perspectiveon shareholder activist strategies in a format accessible to bothprofessional investors and laypeople.
The Deep Value investment philosophy as described by Grahaminitially identified targets by their discount to liquidationvalue. This approach was extremely effective, but thoseopportunities are few and far between in the modern market, forcingactivists to adapt. Current activists assess value from a muchbroader palate, and exploit a much wider range of tools to achievetheir goals. Deep Value enumerates and expands upon theresources and strategies available to value investors today, anddescribes how the economic climate is allowing value investing tore-emerge. Topics include:
- Target identification, and determining the most advantageousends
- Strategies and tactics of effective activism
- Unseating management and fomenting change
- Eyeing conditions for the next M&A boom
Activist hedge funds have been quiet since the early 2000s, buteconomic conditions, shareholder sentiment, and availableopportunities are creating a fertile environment for another goldenage of activism. Deep Value: Why Activist Investors and OtherContrarians Battle for Control of LosingCorporations provides the in-depth information investorsneed to get up to speed before getting left behind.
About the Author
TOBIAS E. CARLISLE is the founder and managing directorof Eyquem Investment Management LLC and serves as portfolio managerof the firm’s fund and managed accounts. He is best known asthe author of the well-regarded website greenbackd.com and asco-author of Quantitative Value: A Practitioner’s Guide toAutomating Intelligent Investment and Eliminating BehavioralErrors (Wiley). He has extensive experience in businessvaluation, portfolio management, investment research, publiccompany corporate governance, and corporate law. Prior to foundingEyquem in 2010, Tobias was an analyst at an activist hedge fund,general counsel of a company listed on the Australian StockExchange, and a corporate advisory lawyer. As a lawyer specializingin mergers and acquisitions, he has advised on transactions acrossa variety of industries in the United States, the United Kingdom,China, Australia, Singapore, Bermuda, Papua New Guinea, NewZealand, and Guam.
Table of Contents
About the Author xvii
Chapter 1 The Icahn Manifesto 1
Chapter 2 Contrarians at the Gate 19
Chapter 3 Warren Buffett: Liquidator to Operator 35
Chapter 4 The Acquirer's Multiple 53
Chapter 5 A Clockwork Market 77
Chapter 6 Trading in Glamour: The Conglomerate Era 99
Chapter 7 Catch a Falling Knife 119
Chapter 8 The Art of the Corporate Raid 151
Chapter 9 How Hannibal Profits From His Victories 169
Chapter 10 Applied Deep Value 187
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