Special situations funds

Special situations funds are investment pools that seek to generate returns by targeting unique or non-traditional opportunities, often involving companies facing significant changes like restructuring, mergers, or distressed assets. These funds analyze complex scenarios where value can be unlocked through strategic interventions or timing. Investors use these funds to diversify their portfolios and potentially enhance returns, understanding that these investments may carry higher risks but also offer the chance for substantial gains in specific circumstances. They require expert management to navigate the complexities of such investments effectively.