WSJ – U.S. companies looking to focus on their core businesses are spinning off or selling divisions at a record pace, moves that, in the past, have given shares a healthy boost.
But lately, those efforts have been met with investor indifference at best and selloffs at worst. Even when shares jump on spinoff news, gains quickly shrivel. That has meant losses for some hedge funds that seek to profit from—and sometimes actively push for—such corporate splits.
