Ayalon (4D) Global Stocks, managed by Ayalon Trust Funds Ltd. on People Inc.
Thesis
People Inc., formerly InterActiveCorp, is controlled by Barry Diller and is viewed as a holding-company compounder with a long record of creating shareholder value. The manager believes the shares traded at a large discount to net asset value and therefore increased the position at what he calls a bargain price. The company has meaningful exposure to MGM and submitted a non-binding cash offer for MGM Resorts, creating a potential transaction catalyst. The thesis rests heavily on confidence in senior management's ability to allocate capital and navigate subsidiaries through periods of stress.
“Due to the high discount at which the company traded compared to its Net Asset Value we once again increased our exposure to this company at a bargain price”
Key risks
- Joey Levin resigned from managing the company
- The proposed MGM Resorts transaction may not be completed or may not create the expected value
- The holding-company discount could persist