How Value Investors Evaluate Spin-offs in 2026

In Episode 49 of The Value Investing Podcast with Fexingo, Lucas and Luna dive into the mechanics of corporate spin-offs and why they remain a fertile hunting ground for value investors in mid-2026. They walk through the recent separation of industrial conglomerate Fortive into two independent companies—a move that unlocked significant hidden value. Lucas explains the historical returns of spin-off stocks, citing a study that shows they outperform the market by an average of 10 percentage points in the first two years. Luna highlights the crucial role of institutional selling pressure, which creates temporary mispricings. They also tie in current market data: the Russell 2000 index has rallied 3.1 percent in the past five days, suggesting renewed interest in smaller, focused companies—an environment that historically benefits post-spin-off stocks. The conversation is grounded in specific numbers and real-world examples, giving listeners a concrete framework for evaluating spin-off opportunities. This episode is part of the Fexingo Business podcast network. #ValueInvesting #SpinOffs #Fortive #CorporateRestructuring #SpinoffReturns #SmallCapValue #BenGraham #WarrenBuffett #IndexFunds #InstitutionalInvestors #Russell2000 #ActiveManagement #Finance #BusinessPodcast #FexingoBusiness #InvestingStrategy #StockPicking #Divestiture Keep every episode free: buymeacoffee.com/fexingo