- IAC specialises in building businesses in sectors that are trying to transition from offline to online
- The company has a long and successful history of spinning off these companies when they reach maturity
Joe Bauernfreund, chief executive officer and chief investment officer of Asset Value Investors, which runs AVI Global Trust (AGT), explains why he invests in North American media and internet company IAC (US:IAC).
"IAC offers exposure to attractive quality assets at a big discount. The company has specialised in building businesses in sectors that are trying to transition from offline to online, such as Expedia with travel and Match with dating. Such businesses are typically capital light, exhibit network effects and enjoy strong structural growth trends. IAC, which describes itself as the "anti-conglomerate conglomerate", has a track record of spinning off such companies to shareholders when they reach maturity and has spawned 10 public companies.