The case describes the introduction of the KBC buyback fund, a mutual fund that plans to exploit the buyback anomaly first recorded by Ikenberry, Lakonishok and Vermaelen (1995).
It reviews the empirical results of the learning which demonstrate positive long-term excess returns after open market buyback programmes. The case deals with the practical issues of setting up such an event- driven fund: marketing, distinguishing businesses that repurchase stocks from those that do so for other motives for great reason, and the way to diversify across event time.
The KBC Buyback Fund Beating the Market with Buybacks case study solution
PUBLICATION DATE: October 29, 2007 PRODUCT #: INS344-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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