This is an event driven strategy that helps us achieve above market returns in the long run. The main objective of the strategy is to utilize special situations that stem from corporate actions including buy-backs, a delisting, spin offs and demergers, delisting or Broken IPOs and distressed situations.
This is a strategy that will be market neutral to a large extent in the long run and will depend upon the events likely to happen in the future. These events unwind value and create shareholder value and are also a function of the “behavioral finance” of the business owners. We are very passionate about this aspect - the behavioral finance as they help us comprehend the reasoning behind various actions of the owners. The distressed situation is another interesting piece that happens every 6-8 years in cyclical industries and offers considerable upside.
Benchmark: Nifty 500