Special situations funds will benefit from opportunities thrown up by the present volatile market especially if the fund has a broad mandate to invest in.
That is the view of Stephen Rothwell, director of Argo Capital. He believes his fund, the Argo Special Situations Fund, has the ability to do this.
Special situation hedge funds invest in event-driven situations like mergers, hostile takeovers, bankruptcies, or leveraged buyouts. Many of these funds will buy stock in a company being acquired