By: Scott Davis

De-conglomeration continues to be a dominant theme in industrials, with companies across the sector under shareholder/activist pressure to simplify their portfolios.  Investors are increasingly looking to isolate assets to own based on growth, risk and cash flow profiles.  This is especially true in a rising ETF/passive money world where active management will hinge on differentiated (often thematic) investments.  In fact, there are now more ETFs out there than actual stocks.  Conglomerates which offer undifferentiated growth/risk/cash flow characteristics have largely been left behind.  The lack of interest in traditional conglomerates seems to have become more acute.

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