A fundamental,
catalyst-driven approach.
We invest in companies undergoing transformational corporate actions — spin-offs, mergers, management changes, and shareholder activism — where a definable catalyst can unlock value the market has yet to price.
Fundamental Catalyst
Our core public-equity discipline: identify transformational change, define where the market is mispricing it, and own the outcome through a definable catalyst.
Idea Generation
Corporate actions and catalysts surfaced across a broad coverage universe.
Research
Bottom-up due diligence on the three to five drivers and risks that move the stock.
Trade Construction
Position sizing driven by risk and reward, with hedges to isolate the catalyst.
Portfolio Monitoring
Continuous reassessment of risk, catalysts, and the market environment.
Where opportunity comes from
- Spin-offs, split-offs, and carve-outs
- Mergers, acquisitions, and divestitures
- Management and board changes
- Shareholder activism
- Corporate reorganizations and post-reorg equity
- Asset sales and restructurings
Sources of upside
- Pure-play entities that reveal hidden value
- Sharper management focus and incentives
- Improved capital allocation and transparency
- Re-rating as the market understands the change
Why the mispricing persists
The spin-off is the clearest case. Joel Greenblatt's You Can Be a Stock Market Genius documented why they are systematically underpriced: index and mandate rules force holders to sell regardless of value, coverage is thin, and managers often own equity for the first time. The research he popularized found spin-offs outpaced the market by roughly ten points a year over their first three years. We look for that same tilt across every corporate action.
Read the full case →Merger Arbitrage
Capturing the spread between price and certainty.
We invest in announced mergers and acquisitions, earning the spread between the target's price and the agreed terms as deals close. Rigorous assessment of deal certainty and disciplined sizing make the return depend on completion rather than market direction.
What we assess
- Regulatory and antitrust approval
- Financing certainty
- Shareholder and board approval
- Timeline, downside, and break risk
The structural edge
We can wait.
That is the edge.
Catalyst investing has a structural problem: corporate change takes longer than most capital is allowed to stay. Redemptions, fund lives, and quarterly report cards turn patient theses into forced sales, usually at the worst moment.
Permanent capital removes it. We underwrite catalysts measured in years, hold through the volatility between announcement and outcome, and size to conviction rather than a redemption schedule. Our process protects the downside — hedges that isolate the catalyst, sizing driven by risk and reward, continuous reassessment. The balance sheet does the rest: it gives the thesis time to be right.