Ayalon Trust Fund (4D) Global Stocks on People Incorporated
Thesis
People Incorporated, formerly InterActiveCorp, is viewed primarily as a capital-allocation vehicle under Barry Diller. The fund believes the stock-price decline has overlooked the value created for shareholders over many years and that the shares traded at a substantial discount to net asset value. It increased exposure at what it describes as a bargain price and continues to trust senior management to navigate the portfolio through difficult periods. The company's 26.1% stake in MGM and its proposed transaction involving MGM provide additional potential avenues for value creation.
“we once again increased our exposure to this company at a bargain price”
Key risks
- Joey Levin resigned from managing the company
- Execution risk around potential acquisitions and portfolio transactions