A special situation is an unusual event that if exploited, will yield higher than average returns and will provide a firm foundation for strong performance.
When combined with strong underlying investment fundamentals, strategic planning and quick execution, taking advantage of a unique situation will reduce risk and enhance returns.
The HS Special Situations fund will be established taking advantage of the prevailing market conditions across several asset classes.
The key strategy is to focus on asset-backed investments across multiple asset classes and always invest when the prevailing market conditions are favourable to do so. As all asset classes are subject to external factors which influence performance and value at different times, HS will build up a well-balanced portfolio of asset-backed investments with optimised performance as a result of the timely acquisition.
While we are firm believers that poor investment performance is always related to poor planning and poor execution of a business plan, it is also vital to make any initial investment at the right time and the right price.
Focusing on specific asset classes always over-exposes a fund to market conditions and leads to acquisitions being made in less than optimum market conditions. This, of course, creates unnecessary risk and undermines fund performance.
Always mitigate investment risk by investing at the right time, and the right price as this serves to reduce risk and optimise performance.
Always plan for further investment to both enhance value and performance over the medium to long term. A business should always model the downside of not investing and should undertake an impact assessment which considers income, value and the cost of essential future investment.
HS seeks to optimise performance at every stage and level of the investment. The HS Special Situations Fund strategically targets assets and asset classes where a well-planned acquisition can yield an immediate upside.
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