Special Situation Investing

Friday, February 09, 2007

Spinoff Tracker Index - Rebuttal

One of my main priorities in investing is to always stay level-headed and unbiased. As such, I wanted to pass on an email I received in regards to my previous post on a spinoff tracker index. The author makes a number of good points so I will allow you to decide for yourself the merits of the index.


I felt I should write you after reading your post on our index.

We have licensed the index to Claymore who has issued the ETF symbol:

Our methodology is more quantitative than qualitative and followed some of the knowledge gained from research performed before we created the first investable spin-off index.



Penn State University: Cusatis et al., 1993

Purdue University: McConnell et al., 2004

Wall Street/Consultant research

McKinsey: Anslinger et al., 1999

Goldman Sachs: Stelmach et al., 2006

Lehman Brothers: Dickson et al., 2006

Our back-tests did not data mine and took into account certain survivor biases. We feel our work was sound and I personally invested in the Claymore/Clear Spin-Off ETF on its opening day.

Please feel free to contact me if you would like more details. Our site is reasonably complete and I am blogging on many of the constituents.

Best regards,
Andrew Corn
Clear Indexes LLC
Blog: www.ClearAMIdeas.com


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