Tobias Carlisle on Carl Icahn, Family Dollar and Deep Value

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Interview with Charlotte’s NPR affiliate talking Carl Icahn, Family Dollar and Deep Value

Tobias recorded an intervie with WFAE 90.7 (“Charlotte’s NPR News Source”) about the strategy behind Carl Icahn’s exit from Family Dollar Stores, Inc. (NYSE:FDO) and Deep Value: Why Activist Investors and Other Contrarians Battle for Control of Losing Corporations. Here is Icahn Exits, Family Dollar Considers Rival Bids:

The future of Family Dollar is uncertain—it’s in the midst of a bidding war as its board of directors decides whether to sell the company to Dollar Tree, Inc. (NASDAQ:DLTR) or Dollar General Corp. (NYSE:DG). But this much is certain: The billionaire investor who helped spur this pending ownership change is now cashing in.

Rewind to June: Family Dollar’s earnings are sluggish, stock is stagnant, and competitors are pulling away. Carl Icahn thunders in; the 78-year-old activist investor buys more than $150 million of the company’s stock and options, demands a change in leadership, and threatens to attempt a hostile takeover.

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Fast forward to present: Family Dollar is trading at an all-time high, $80 per share, and fielding offers from its two chief rivals. And Icahn is out.

“This is classic Carl Icahn—[find a] deeply undervalued company with an ugly looking business that he can buy and create an event. And that event was the sale,” says Tobias Carlisle, managing director of Eyquem Investment Management and the author of “Deep Value: Why Activist Investors and Other Contrarians Battle for Control of Losing Corporations.”

Read the rest of Icahn Exits, Family Dollar Considers Rival Bids here.

Buy Deep Value: Why Activist Investors and Other Contrarians Battle for Control of Losing Corporations

 

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My name is Tobias Carlisle. I am the founder and managing member of Eyquem Investment Management LLC, and portfolio manager of Eyquem Fund LP. Eyquem Fund LP pursues a deep value, contrarian, Grahamite investment strategy based on the research featured in Quantitative Value: A Practitioner’s Guide to Automating Intelligent Investment and Eliminating Behavioral Errors (hardcover, 288 pages, Wiley Finance, December 26, 2012), and discussed on Greenbackd. I have extensive experience in activist investment, company valuation, public company corporate governance, and mergers and acquisitions law. Prior to founding Eyquem, I was an analyst at an activist hedge fund, general counsel of a company listed on the Australian Stock Exchange, and a corporate advisory lawyer. As a lawyer specializing in mergers and acquisitions I have advised on transactions across a variety of industries in the United States, the United Kingdom, China, Australia, Singapore, Bermuda, Papua New Guinea, New Zealand, and Guam, ranging in value from $50 million to $2.5 billion. I am a graduate of the University of Queensland in Australia with degrees in law and business (management). Contact me I can be contacted at greenbackd [at] gmail [dot] com. I welcome all feedback. Connect on LinkedIn, where we’re Friends.