Special situations: How to spot a good management team

Every active fund manager will tell you about the importance of a good management team when investing in a company. This is arguably even more important when running a special situations strategy. We class a special situation as a good company that has fallen out of favour with the market but has the potential to return to its former glory. Often it is the arrival of a new management team that is the catalyst for a recovery. So how can you tell if a team will turn a business around or hasten its downfall? In our experience, it comes down to distinguishing those who are capable of spin...