The Special Situations strategy
The special situations strategy is designed to identify and select companies likely to benefit from mergers and acquisitions related activity.
Our “special situations” strategy is constructed using a screening process supported by third party institutional research. Our approach selects companies where price discrepancies may exist between the merger terms and the share price or where credible bid speculation has emerged suggesting short-term corporate activity. Special situations will stay on top of fast moving takeover situations.
Benchmark:
Typical No. of Holdings:
Discipline:
Strategy criteria:
Typical No. of Holdings:
Discipline:
Strategy criteria:
Not applicable
8-20
“Bid situation”/corporate activity/M&A that meets criteria.
Hostile takeover situations, corporate activity expectations/insider activity.
8-20
“Bid situation”/corporate activity/M&A that meets criteria.
Hostile takeover situations, corporate activity expectations/insider activity.
Key features of the Special Situations strategy:
- Will tend to focus on companies marked as “Bid Situation” or in instances where corporate activity can be reasonably expected to occur within a reasonable time frame.
- The strategy will aim to capture and provide an investment view of fast moving takeover situations involving both target and acquirer where price discrepancies may exist.
- The approach will be forward looking and constantly evolving with monthly reviews and will aim to anticipate M&A, MBO opportunities.
- No sector constraints, “special situations” by their nature arise in all sectors.
Downloads:
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General Risk Warning:
The market information relating to past performance of an investment is not necessarily a guide to its performance in the future. The value of the investments or income from them may go down as well as up. As stocks and shares are valued from second to second, their bid and offer value fluctuates sometimes widely. The value of investments may rise or fall due to volatility of world markets, interest rates and capital values or, for investments held in overseas markets, changes in the rate of exchange in the currency in which the investments are denominated. You may not necessarily get back the amount you invested. Please note that Small caps carry higher investment risk than established companies. These types of Shares may be suitable for some investors but they are not for everyone. Please also note that there can be a big difference between how much you pay for the Shares and how much you can sell them for and if you want to sell them, it can sometimes be difficult to find a buyer. Also, Shareholder influence can sometimes be limited because the majority of the Shares may be closely held (e.g. – company directors). Publicly available information may be less comprehensive than that provided by listed companies, so you may be unable to assess the business and its finances in any great depth. Finally, there is increased risk of losing some or all of the money invested.
The market information relating to past performance of an investment is not necessarily a guide to its performance in the future. The value of the investments or income from them may go down as well as up. As stocks and shares are valued from second to second, their bid and offer value fluctuates sometimes widely. The value of investments may rise or fall due to volatility of world markets, interest rates and capital values or, for investments held in overseas markets, changes in the rate of exchange in the currency in which the investments are denominated. You may not necessarily get back the amount you invested. Please note that Small caps carry higher investment risk than established companies. These types of Shares may be suitable for some investors but they are not for everyone. Please also note that there can be a big difference between how much you pay for the Shares and how much you can sell them for and if you want to sell them, it can sometimes be difficult to find a buyer. Also, Shareholder influence can sometimes be limited because the majority of the Shares may be closely held (e.g. – company directors). Publicly available information may be less comprehensive than that provided by listed companies, so you may be unable to assess the business and its finances in any great depth. Finally, there is increased risk of losing some or all of the money invested.
ETFs Risk Warning:
ETFs are highly complex financial instruments that carry significant risks. They are suitable for investors who understand their strategy, characteristics and risks. You should ensure that the ETF meets your own objectives and circumstances, and consider the possible risks and benefits of purchasing the ETF before investing. ETFs are more complex in structure and carry a much increased level of risk. It is essential you understand the risks involved. If you are unsure about the suitability of ETFs for your own investment needs you should contact your broker for advice and further information. Before making a decision to invest in ETFs, you should discuss the product with your broker and read the ETF Prospectus carefully to ensure that you fully understand the ETF you are intending to purchase. The Prospectus will detail how the ETF aims to meet its investment objectives. Whilst most ETFs can achieve their objectives by purchasing a diversified pool of assets, some achieve their objectives through the use of derivatives, typically swaps, which carry counterparty risk. If the counterparty does not pay the sums due, the investor will see a reduced return regardless of the performance of the underlying assets.
ETFs can often have unique compounding, daily reset and leverage features that may significantly amplify risk, particularly for medium and long-term investors, and in periods of high market volatility. The value of an ETF may be affected by market values, interest rates, exchange rates, volatility, dividend yields and issuer credit ratings. These factors are interrelated in complex ways, and as a result, any losses or gains could be magnified.
ETFs are highly complex financial instruments that carry significant risks. They are suitable for investors who understand their strategy, characteristics and risks. You should ensure that the ETF meets your own objectives and circumstances, and consider the possible risks and benefits of purchasing the ETF before investing. ETFs are more complex in structure and carry a much increased level of risk. It is essential you understand the risks involved. If you are unsure about the suitability of ETFs for your own investment needs you should contact your broker for advice and further information. Before making a decision to invest in ETFs, you should discuss the product with your broker and read the ETF Prospectus carefully to ensure that you fully understand the ETF you are intending to purchase. The Prospectus will detail how the ETF aims to meet its investment objectives. Whilst most ETFs can achieve their objectives by purchasing a diversified pool of assets, some achieve their objectives through the use of derivatives, typically swaps, which carry counterparty risk. If the counterparty does not pay the sums due, the investor will see a reduced return regardless of the performance of the underlying assets.
ETFs can often have unique compounding, daily reset and leverage features that may significantly amplify risk, particularly for medium and long-term investors, and in periods of high market volatility. The value of an ETF may be affected by market values, interest rates, exchange rates, volatility, dividend yields and issuer credit ratings. These factors are interrelated in complex ways, and as a result, any losses or gains could be magnified.
Emerging Markets Risk Warning:
Investing in emerging markets carry higher levels of risk due to the nature of these investments. These investments are
more volatile than investments in established markets. Please note that this strategy might invest in predominantly one geographic area. As a result of this, the value and prices of the underlying assets may be affected by any type of decline in the economy of this area. Also, the currency exchange rate may cause the value of investments to go down as well as up where overseas investments are held. The governance, including supervision and accounting may not be the same as those in established markets which could result in lower shareholder protection. Additional risks associated with investing in emerging markets include systems and standards affecting trading, settlement, registration and custody of securities, which could be lower than in established markets. Please note that emerging markets can often be more illiquid than established markets and this can lead to greater price fluctuation.
Investing in emerging markets carry higher levels of risk due to the nature of these investments. These investments are
more volatile than investments in established markets. Please note that this strategy might invest in predominantly one geographic area. As a result of this, the value and prices of the underlying assets may be affected by any type of decline in the economy of this area. Also, the currency exchange rate may cause the value of investments to go down as well as up where overseas investments are held. The governance, including supervision and accounting may not be the same as those in established markets which could result in lower shareholder protection. Additional risks associated with investing in emerging markets include systems and standards affecting trading, settlement, registration and custody of securities, which could be lower than in established markets. Please note that emerging markets can often be more illiquid than established markets and this can lead to greater price fluctuation.
