Warren Buffett play: 6 things to consider before investing in Special Opportunities Fund
Special Opportunities Fund (SOF) is a type of investment fund that seeks to capitalize on unique, often short-term opportunities wherein the stock of the company starts trading below its intrinsic value (fair value) thus creating a buying opportunity.
Warren Buffett's approach also focuses on intrinsic value, margin of safety, and a long-term perspective. Special Opportunities Funds often target distressed assets or special situations where the intrinsic value is not reflected in the current market price.
By understanding the true value of these investments, fund managers can capitalize on significant price discrepancies.
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The Special Opportunities Fund seeks to invest in companies undergoing significant corporate events such as restructuring, mergers and acquisitions, technological disruptions, or regulatory changes.
“These events create situations where these companies are undervalued relative to their intrinsic worth. This investment strategy, famously employed by investors like Warren Buffett, has historically performed well across various market cycles,” Alekh Yadav, Head of Investment Products, Sanctum Wealth, said.
WhiteOak and Samco Mutual Fund have announced their respective special opportunities funds in May.
Also Read: WhiteOak Capital Mutual Fund launches special opportunities fund
WhiteOak Capital Mutual Fund has announced the launch of WhiteOak Capital Special Opportunities Fund. The fund is
