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Sanken Electric Co., Ltd.

SKNTF position long Gavin Baker, Atreides Management

Thesis

Sanken Electric has a crown jewel asset in Allegro MicroSystems, and its shares are trading at a significant discount to the tax-affected value of this stake. With activist investors like Effissimo and Oasis involved, there is potential for value enhancement and a realization of this discount.

Did it work?

worked confidence: low

No price data or elapsed time is provided, so the judgement rests on whether the thesis's stated catalysts occurred. Based on known developments, they largely did: Effissimo and Oasis built activist stakes, Sanken monetized portions of its Allegro MicroSystems holding via secondary offerings, directed proceeds to large share buybacks, and the shares re-rated sharply, narrowing the NAV discount. Because this assessment relies on background knowledge rather than supplied price performance, confidence is low.