How Megacap Spin-offs Are Creating Hidden Value

Stock Picking with Fexingo: Individual Equities, Research, and Building a Concentrated Portfolio · Jul 15, 2026 · 8m · transcript

Lucas and Luna explore a fresh angle in stock picking: major conglomerates quietly spinning off divisions to unlock value. Using data from mid-2026, they examine how recent spin-offs from companies like GE and Johnson & Johnson have created outsized returns for concentrated investors. Lucas breaks down the structural catalyst—how spin-offs force management accountability and reveal hidden assets—while Luna questions whether the market is now pricing in these moves too quickly. They discuss the mechanics of a spin-off arbitrage, with specific examples of post-split performance, and consider…