The Horizon Kinetics Spin-off and Corporate Restructuring Fund , which buys stocks shortly before or after a corporate event, has created a narrow portfolio of smaller stocks that is crushing the market in 2022.
The fund has gained more than 17% in 2022 even as the S & P 500 fell into a bear market.
James Davolos, a portfolio manager at Horizon Kinetics, said that spin-offs can create mispricing of stocks due to market structure.
So they are probably going to sell the stock," Davolos said.
Worker hospitality stock Civeo Corp ., which was spun out from Oil States International in 2014 , has also been a big winner for the Kinetics fund in 2022, gaining more than 40%.