Special Situation Investments – Low Risk Arbitrage Opportunities

Do You Invest in
Special Situations?

Investor community focused on low risk arbitrage opportunities and SPACs with short term catalysts

Focus on SPACs,
Special Situations

We cover low risk arbitrage opportunities with short term catalysts all around the globe.

Investment Ideas

Find an Edge
in the Markets

We aim to enhance your due diligence by providing actionable ideas backed by high quality and in-depth research.

Track Record

Contribute
and Participate

Share your insights and investment ideas, receive feedback from professional investors and participate in savvy discussions.

Contributors

Actionable Investment Research

We focus on special situations and risk arbitrage opportunities with short term catalysts. Our research database includes SPACs, merger arbitrage, tender offers, spin-offs, split-offs, liquidations, bankruptcies, going private transactions, rights offerings and many other types of situations.

High Quality Research

Research reports on every case are backed by in-depth analysis with clearly defined catalysts, valuation targets, upside opportunities and downside risks.

Explore more

Global Coverage

In 2020 so far, over 120 investing opportunities have been published on Special Situation Investments already. The scope includes and covers companies listed in the United States, Canada, the United Kingdom, Australia, Japan, Singapore, and other markets.

Explore more

Exclusive Access

Access to currently actionable special situation ideas is limited to members only. Previous cases are free to view for all website visitors.

Explore more

- High Quality Research

Research reports on every case are backed by in-depth analysis with clearly defined catalysts, valuation targets, upside opportunities and downside risks.

- Global Coverage

- Exclusive Access

Access to currently actionable special situation ideas is limited to members only. Previous cases are free to view for all website visitors.

Subscribe to our FREE newsletter

and stay up to date with the latest special situation opportunities

Success case

Westell Technologies was carrying out a 1 for 1000 reverse/forward stock split in order deregister from SEC. Fractional shareholders had to be cashed out at $1.48/share. There were a number of positive signs that put the success chances of this transaction above many of the similar recent cases. In short, management owned a significant stake (26%) and the whole purpose of the transaction seemed to be buying out minority shareholders cheaply rather than only to save on the public listing costs. Eventually, the transaction closed as expected and fractional holders (999 shares or less) got cashed out generating a $450 return in 3 months.

Westell Technologies (WSTL) - Reverse Split - $450 In 3 Months

This was one of the most profitable split-off transactions over the last 10 years. Ecolab distributed its remaining stake in Apergy by converting $100 of ECL shares accepted in the tender into $111.11 of Apergy. Holders of less than 100 shares were accepted on a priority basis and had an option to earn almost risk-free $2100 (for hedged positions), while unhedged trades made over $11000 due to post-covid recovery in the oil prices and oil industry.

Ecolab (ECL) - Split-Off - $2,100 In One Month (+$11,000 for unhedged positions)

This was a highly interesting tender offer. Analytics software services provider Marchex announced intentions to launch a joint and equal tender offer with its largest shareholder/activist Edenbrook Capital for 23% of outstanding shares. For quite some time activists have been pushing the company to improve its operational and share price performance, while noting valuation estimates at 2x-3x premium to current prices. Thus, it seemed the offer might end up undersubscribed. The thesis proved to be spot on as, to entice shareholder participation the management has even increased the offer price by 16%. And after the spread narrowed, the idea was closed with a 23% profit in 1.5 months. Given the strong interest from the activists, it might be worth keeping an eye on MCHX in the future.

Marchex (MCHX) - Tender Offer - 23% In 1.5 Months

A capital structure arbitrage for a freshly SPAC-listed Nikola Corporation. NKLA warrants were trading at a substantial ($30-$40/share) discount to NKLA common stock. Borrow was hardly available and extremely expensive (900%/year), however synthetic short through options offered an attractive arbitrage play. The trade had several risks with the main one being timely SEC approval of a new share registration statement, which is needed to exercise the new warrants to be exercised into common stock. As expected, with a slight delay the regulatory approval was received allowing to exchange warrants into common stock. This arbitrage resulted in a 36% profit in 1 month.

Nikola (NKLAW) - Capital Structure Arbitrage - 36% In One Month

A standard split-off transaction whereby McKesson distributed its remaining stake in Change Healthcare. Every $100 of MCK shares accepted in the tender were converted into $107.53 of CHNG shares, subject to an upper limit of 11.4086. Due to odd-lot priority provision, owners of less than 100 shares had an option to earn almost risk-free $1200, while the rest of the market was in downfall.

McKesson (MCK) - Split-Off - $1200 In One Month

This was an all-stock micro-cap pharma merger between OncoMed Pharmaceuticals and Mereo Biopharma. Spread stood at 63% (+ additional upside from CVRs) and seemed worth the risk even without hedging. Mereo (the buyer) seemed credible, had already acquired similar drug development programs in the past, and was unlikely to walk away. OncoMed shareholder approval was almost guaranteed due to 11% ownership by management and another 35% by affiliated entities and large pharma. Within two months the spread had narrowed due to a 46% run-up in OMED share price and the idea was closed. This appeared to be a timely exit opportunity due to pressure on Mereo's stock price post-closing of the merger. CVRs remain outstanding and might result in multi-bagger if milestones are triggered.

OncoMed Pharmaceuticals (OMED) - Merger Arbitrage - 46% In Two Months

Growing Community of Special Situation Investors

Join our growing community, participate with your ideas and discussions, ask questions and receive valuable feedback from fellow members.

From Individual Investors
to Professional Funds

Our members have a wide range of competences: from individual stock-pickers to larger capital allocators, family offices, Registered Investment Advisors, arbitrage and other funds.

Explore more

Continuous Updates for
Easier Tracking

Our members monitor and discuss all active arbitrage opportunities regularly. A site-wide summary report with updates on each idea is issued on a monthly basis.

Explore more

Contribute or Pay for Access

Want to become a member and have access to the full content? Contribute with your own research on a special situation investment idea or pay for subscription. Monthly or annual subscription plans are available.

Explore more

- From Individual Investors to Professional Funds

Our members have a wide range of competences: from individual stock-pickers to larger capital allocators, family offices, Registered Investment Advisors, arbitrage and other funds.

- Continuous Updates for Easier Tracking

Our members monitor and discuss all active arbitrage opportunities regularly. A site-wide summary report with updates on each idea is issued on a monthly basis.

- Contribute or Pay for Access

Performance

Our goal is to find the perfect balance between the most lucrative returns while staying at reasonable levels of risk. The performance result speaks for itself. Below are a few examples of our best performers and historical win rate levels of all published cases.

Top ideas

SKYS - Merger Arbitrage

100%

DXTR - Liquidation

100%

DEST - Technical Sell-Off

90%

ATXI - Merger Arbitrage With CVR

76%

GHL - Expected Tender Offer

75%

Disclaimer: Historical performance statistics shown here and on other parts of SSI website do not represent actual trading results and are meant for informational purposes only. There is no guarantee that cases currently published on SSI or to be published in the future will deliver similar results.

Win rate

2016

78%

2017

76%

2018

67%

2019

69%

2020 so far

68%

Win rate indicates the percentage of all published ideas that we consider to have worked-out favorably in the expected direction. To stay conservative, cases that generated lower than 1% returns are considered as losers.

Top ideas

Win rate

SKYS - Merger Arbitrage

100%

DXTR - Liquidation

100%

DEST - Technical Sell-Off

90%

ATXI - Merger Arbitrage With CVR

76%

GHL - Expected Tender Offer

75%

2016

78%

2017

76%

2018

67%

2019

69%

2020 so far

68%

Education: read and learn

Explore our educational section and learn how to invest in Special Situations

Merger Arbitrage

In-depth guide on merger arbitrage with number of real live recent cases.

Read more

Investing in SSI

Detailed coverage of various types of special situations and tips on how to think about them.

Read more

Split-Offs

Comprehensive look into split-offs: best trading strategies and historical performance.

Read more

Subscriber story

I don't have a sophisticated investment background and investing for me is more like a hobby that I enjoy very much. SSI was recommended to me by one of my friends, who is a professional investor. So far I think it's great. Lots of new ideas and it's easy to follow all the updates, which I hard keeping track off when doing on my own. It's very handy to have it all in one place and read members opinions too.

Duncan S

Private Investor

SSI research is a massive help to my due diligence and investment decisions. The site helps me to discover new ideas and get a broader perspective on them. I find the feedback/pushback from other professionals members to be very valuable. SSI research often fills the gaps in my own analysis and several times the discussions with other members saved me from making some expensive mistakes. I guess investing is an ever-learning process. Overall, great work guys.

Tony G

Private Investor

I have been investing in special situations for over 10 years and in this field SSI is the best you can find. The team behind the portal is definitely putting themselves up to high-quality standards. Investment ideas are top-notch and well-researched, whereas updates are always timely and insightful. Aside from being a place to discover new investment ideas, I find discussions with fellow members to be very valuable.

Brian P

Private Investor

It doesn't matter whether you're just a beginner or a highly experienced investor already. If you're interested in special situations, I don't see why you shouldn't become a member. SSI offers you all that you can expect from such a service and more. The research is very high quality and with over 20 years of investment background, I must say that I've been surprised by how good SSI track record and performance are. Simply put, SSI gives you more than what you pay for - and that sounds like a good investment to me.

Daniel M

Private Investor

I'm a full time investor and I have been following SSI for over one year. Just wanted to say that I'm definitely enjoying the site and actuallly learned a lot from you and the community. I read all of the featured ideas and check the site on a daily basis. Don't want to miss yet another good trade. Thank you for your efforts and keep up the good work!

Andy U

Private Investor

Join Community of
Special Situation Investors

Do You Invest in
Special Situations?

Investor community focused on low risk arbitrage opportunities and SPACs with short term catalysts

Focus on SPACs,
Special Situations

Find an Edge
in the Markets

Contribute
and Participate

Actionable Investment Research

Subscribe to our FREE newsletter

and stay up to date with the latest special situation opportunities

Success case

Growing Community of Special Situation Investors

From Individual Investors
to Professional Funds

- From Individual Investors to Professional Funds

Performance

Education: read and learn

Merger Arbitrage

Investing in SSI

Split-Offs

Subscriber story

This website uses cookies to ensure you get the best experience on our website.

Special Situations in your inbox

Subscribe today for timely notifications on special situation investments.

You can unsubscribe at any time

Do You Invest in Special Situations?

Investor community focused on low risk arbitrage opportunities and SPACs with short term catalysts

Focus on SPACs,Special Situations

Find an Edge in the Markets

Contribute and Participate

Actionable Investment Research

Subscribe to our FREE newsletter

and stay up to date with the latest special situation opportunities

Success case

Growing Community of Special Situation Investors

From Individual Investors to Professional Funds

- From Individual Investors to Professional Funds

Performance

Education: read and learn

Merger Arbitrage

Investing in SSI

Split-Offs

Subscriber story

This website uses cookies to ensure you get the best experience on our website.

Special Situations in your inbox

Subscribe today for timely notifications on special situation investments.

You can unsubscribe at any time

Do You Invest in
Special Situations?

Focus on SPACs,
Special Situations

Find an Edge
in the Markets

Contribute
and Participate

From Individual Investors
to Professional Funds