Do You Invest in Special Situations?
I focus on event-driven trades and low risk arbitrage opportunities with short term catalysts
Premium investment picks in the event-driven space. Always supported by original and detailed research.
1-4 opportunities every month.
Weekly dispatch of quick ideas that piqued my interest but did not make it to the highest-conviction cut.
2-4 quick pitches every week.
VIC Investment Summaries
Straight-to-the-point summaries of investment ideas posted on Value Investors Club. From compounders to multi-baggers.
2-5 opportunities every day.
Tracking Portfolio +640% since 2017
All ideas published on SSI are coupled with high-quality research reports. SSI subscribers range from hedge fund professionals to individual stock-pickers.
Actionable Investment Ideas
On average we publish 5-10 new new investment opportunities every month. Covered cases include merger arbitrage, tender offers, option trades, spin-offs, split-offs, liquidations, bankruptcies, SPACs, going private transactions, rights offerings and many other types of event-driven situations.
Each trade is actively discussed by investors on SSI who range from hedge fund managers to individual stock pickers – all sharing ideas and talking event-drive trades on a daily basis.
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All currently actionable investment opportunities are exclusive to SSI subscribers. Sign up today and gain full access to the latest ideas and discussions. One successful trade will more than cover the cost of subscription.
Countrywide (CWD.L) - Merger Arbitrage - 53% In 1 MonthCountrywide, one of the largest real estate agencies in UK, received a preliminary offer at £2.50/share in cash from its peer Connells Group. Although the proposal was still at a non-binding stage, the situation seemed interesting as the company had certain upcoming issues with debt covenants and this takeover presented a better pathway than the extremely dilutive recapitalization transaction recently proposed by another firm. The buyer seemed credible and the strategic rationale was sound. Certain activist, which owned 10.5% of CWD.L also was expected to support the offer. The offer price appeared to be relatively low, but kind of justifiable due to the weaker performance of CWD.L compared to the peer firm. Eventually, Connells not only provided a firm offer but also increased the price by 30%. Read more
Meten EdtechX Education Group (METX) - Warrant Arbitrage - 175% In One MonthMeten EdtechX Education Group was a failed post-merger SPAC that due to liquidity issues, temporarily reduced the exercise price of their warrants from $11.50 to $1.40 per each warrant. The situation provided an attractive arbitrage opportunity and it seemed that the offer was likely to go through as the company was impacted by COVID and needed extra cash to survive. Aside from that, insiders held a third of the warrants and also seemed to be incentivized to cheaply increase their ownership in METX. There was a 65% acceptance condition, however, it was eventually waived and the offer went through as expected generating +175% returns on the warrant price in one month. Read more
Charles & Colvard (CTHR) - Potential Acquisition Target - 91% In 3.5 MonthsCharles & Colvard, moissanite producer received an opportunistic acquisition proposal that was turned down by the board. At the same time an activist/largest shareholder with 10% ownership was pushing for the sale of the company with $2/share (150% upside) valuation in a conservative scenario. Downside appeared to be limited and the company looked cheap assuming recovery from COVID and a successful tun-around plan. Eventually, the company announced Q3'20 results, which were very positive, and expectations for Q4 were even higher due to the holiday season, reopening of the stores, and addition of 50 new retail stores in Macy'. Insiders continued to acquire shares as well. All in all, many different catalysts seemed to be on the table. And, although there have been no further news from the activist, CTHR stock appreciated significantly. Read more
Sky Solar (SKYS) - Merger Arbitrage - 100% In 1 MonthAt a first glance, alternative energy firm Sky Solar seemed like a messy and repulsive situation (US-listed Chinese firm with fraudulent ex-CEO + pile of litigations), however, deeper research revealed that besides being backed by US VC firm, SKYS was also a target of several privatization proposals by non-Chinese parties. The most recent all-cash offer came from a Japanese led consortium, which then owned 72% of the company, whereas a certain SKYS debt holder Hudson Capital tabled a "considerably higher bid" (despite bombarding the company with litigations claiming insolvency). Eventually, the Japanese consortium terminated their proposal and filed a tender offer instead aiming to raise their stake from 77.5% to 90% and then move for a squeeze-out. On such news, most of the arbitrage spread was eliminated and the idea was closed with 100%+ return in 1 month. Read more
DuPont de Nemours (DD) - Split Off - $1300 In One MonthThis was a standard split-off transaction. DuPont de Nemours (DD) was selling its Nutrition & Biosciences (N&B) business to International Flavours & Fragrances (IFF). As part of the transaction, N&B had to be split-off and merged into a subsidiary of IFF. DD shareholders had the option to participate in the tender and exchange their DD shares for IFF shares. Every $100 of DuPont stock accepted in the tender was be converted into $107.53 of International Flavours & Fragrances (IFF) stock subject to the upper limit of 0.7180 shares of IFF per DD share. Odd lot priority was included. Borrow for hedging was unavailable on IB. As with every previous split-off deal before, this transaction closed successfully. Unhedged positions (as hedging was not an option) resulted in a +17% gain (for odd lots) in 1 month. Read more
Ashford Hospitality Trust (AHT) – Preferred Stock Tender – 80% In 1 MonthAshford Hospitality Trust (REIT with 116 hotels) launched tender offer to exchange all of its preferred shares into common shares at 5.58 ratio diluting existing common holders by 90%+. AHT was severely hit by the COVID-19, which resulted in substantial cash burn and a tight liquidity situation. The company claimed that they need this exchange in order to get rid of the preferred stock burden and ease their access to capital markets. Management seemed very incentivized and in the process has waived pretty much all of the outstanding conditions that were obstructing the transaction. Eventually, all tendered shares were accepted for exchange resulting in 200% return for the unhedged positions and 80% return for hedged positions. Read more
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Valuable Insights From Pros
Investors on SSI have a wide range of competences: from individual stock-pickers and stock bloggers to hedge fund managers and arbitrage funds. Everyone is invited to ask questions and receive valuable feedback.
Continuous Updates for Easier Tracking
We continuously track and update all investment opportunities posted on the site. E-mail notification available for new ideas and discussions. A site-wide summary report with updates on each active idea is issued on a monthly basis.
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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.
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 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.
Explore our educational section and learn how to invest in Special Situations
In-depth guide on merger arbitrage with number of real live recent cases.
Investing in SSI
Detailed coverage of various types of special situations and tips on how to think about them.
Comprehensive look into split-offs: best trading strategies and historical performance.