New Capital
Contrarian, Deep Value, long/short equity, special situations

Steel Partners Holdings LP - Should It Trade At 53% Discount To Its Net Asset Value?

Steel Partners Holdings (NYSE:SPLP) is a holding company that owns mostly publicly listed companies. Some investors call it a new Berkshire Hathaway. SPLP currently trades at 53% of its net asset value and is run by an activist investor Warren Lichtenstein. According to the Financial Times, his previous partnership produced gross annual returns of 22% from its 1990 inception to 2007 (article here). He sits on many of the boards the company holds stakes in.

So it would seem investors could potentially acquire the same holdings as the well-known activist investor at 47% discount to the market prices. However, this discount to net assets persists already for a few years and in this article I will investigate...

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