Special Situations Investing

Special Situations Investing involves seeking opportunities where specific events, such as mergers, acquisitions, bankruptcies, or restructurings, create mispriced assets or potential for significant gains. Investors analyze these situations to identify scenarios where the underlying company’s circumstances are likely to change, offering the chance for above-average returns. This approach requires careful evaluation of risks and prospects related to the event. Essentially, it’s about capitalizing on unique corporate developments that can significantly impact a company’s value, offering tailored investment opportunities outside typical market movements.