The Special Situations Strategy is available only to accredited investors. Investment minimums and capital withdrawal constraints may apply.
Investment Objectives:
- The Special Situations Strategy seeks to achieve superior investment returns over the long term by investing in the public equity of undervalued companies and seeking to effect operational changes with the objective of substantial capital appreciation.
- Global Value Investment Corp. (GVIC) will attempt to actively engage with senior management in a constructive manner to implement operational changes designed to substantially improve the value of the enterprise.
- More aggressive activist strategies will be employed as necessary to engage with entrenched or obstinate management teams or boards of directors.
Portfolio Construction:
- Portfolios are expected to hold between three and 10 positions at initiation weightings of 10% to 30%.
- Positions will trade at a discount to appraised value of 50% or more at initiation.
Strategic Options:
- GVIC expects to become a 13D filer for most portfolio companies.
- GVIC may seek representation on the board of directors via negotiated arrangements or proxy contests.
- In collaboration with investors and third-party capital partners, GVIC may pursue go-private transactions with portfolio companies.
- In limited situations, GVIC may invest in the public debt of portfolio companies with the objective of exercising equity-like rights from a senior position in the capital structure.
- At the advice of legal counsel, GVIC may pursue a number of other available options, including but not limited to, action by written consent, legal proceedings, tender offers, and negotiated reorganization packages.
Performance Expectations:
- Appreciation of 100%+ in each portfolio position over a three-year holding period.