Greenbackd

Catalyst Investment Research, the collaboration between Damien J. Park of Hedge Fund Solutions and The Official Activist Investing Blog, and Jonathan Heller, CFA, of Cheap Stocks, has a new Special Report on the Steel Partners II Investment Portfolio (.pdf).

In the Special Report, Damien and Jonathan analyze the Steel Partners II portfolio companies to determine which have been “unfairly impacted by the recent selloff” following Steel Partners II’s announcement that it will restructure as a publicly-traded holding company.

Damien and Jonathan describe the opportunity as follows:

Following months of litigation with several investors seeking to block the restructuring, Steel was granted Court approval to move forward with the plan on June 19. As a result, on July 15, Steel Partners distributed approximately half of the economic value of their fund via cash and a pro rata in-kind distribution of securities to those investors seeking to exit the fund immediately. Following the distribution, a number of smaller, illiquid securities observed enormous selloffs – causing a massive imbalance in supply and demand, and resulting in a precipitous decline in the market value of certain companies. We believe the dramatic reduction in value at a few of these companies is a short-term phenomenon and not correlated with the fundamental value intrinsic to the company.

Read the rest of the Special Report by clicking here (.pdf).