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Based in Tokyo, Japan, Koyal Group is a boutique equity research house and has its foundations set in personal client advisor relationships, and despite being one of the largest equity research houses in Asia we are proud to say we maintain strong interpersonal links between our clients and... More
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  • Koyal Group Finds Diamond In The Rough 0 comments
    Aug 20, 2013 11:28 AM

    Analysts at Koyal Group claim Steel Partners Holdings L.P is a diverse small cap hedge fund that needs to receive serious consideration from investors.

    Jul. 17, 2013 - TOKYO, Japan -- Analyst and Senior Vice President of Mergers and Acquisitions, Mr. Peter Keller, at Tokyo based equity research firm believes Steel Partners Holdings L.P (NYSE: SPLP) to be undervalued by nearly 40%. Steel Partners Holdings L.P is an international holding company with substantial investments spread across a range of sectors, including; defenses, banking, insurance, and education.

    The company appears weaker on paper than it is in reality due to several primary factors, they have been strictly adhering to GAAP measures, there is a lack of confidence in the CEO who owns a large proportion of the business, and a wide range of investments in companies which are faltering and ugly.

    The company was founded in 1990 by Warren G. Lichtenstein as a small cap activist hedge fund called Steel Partners II. From 1990 to 2008 the fund managed to return 700% for investors. But 2008 and 2009 were dismal years for Steel Partners II; they lost almost 50% of its investments as a result of the credit crisis. This caused Lichtenstein to covert the hedge fund from Steel Partners II to Steel Partners Holdings L.P.

    Steel Partners Holdings L.P. defines its self as a "value investment company," they buy controlling percentages of struggling companies, and then help them to fix their problems so the company can be resold for a profit at a later date.

    Shares of Steel Partners Holdings L.P. currently trade at $14.30, they are increasingly profitable, have a diverse range of investments, and a focus on investor´s interests and providing a safety net for investors.

    The company has grown about 8.5% annually, which is heavily influenced by sales, purchases and dividends from long term investments. The management´s operating policy targets long term investments and an annual increase in average return on equity should be expected in the next few years.

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