Author: David Wang
Covestor model: Event Driven Value
One of the advantages of value investing is that the undervalued companies we find are often good acquisitions for larger companies and private equity firms.
Our Event Driven Value Fund benefited from such buyout events as two of our stocks put themselves on the auction block recently and received buyout offers. We closed our Talbots (TLB) position after it placed itself up for sale for a 23% gain from our purchase price.
We also closed our Pep Boys (PBY) position after it received a buyout offer for a 52% gain from our purchase price.
We remain cautious in the market with our cash position and will continue to aim for superior risk adjusted returns for the long run.
