A Race to Unlock Value
Special situations investing and arbitrage are some of the most effective methods for generating market insulated returns. During times of low dividends, anemic fixed income yields, high equity prices and significant near term uncertainty about the world economy, these types of situations can provide investors with insulation from volatility and a chance at significant profit with relatively low risk.
In the past year, there has been significant deal activity to occupy the attentions of special situations investors in the form of spin-offs as well as arbitrage through numerous companies exploiting low interest rates by issuing debt funded tender offers, being purchased or taking themselves private.
One situation that has drawn the attention of numerous funds...
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