The Company will attempt to profit from event-driven strategies and special situations by focusing on late stage restructurings, capital structure arbitrage, workouts, and liquidations. Event driven strategies include taking long and short positions in securities of companies engaged in some form of major reorganization which is subject to certain hurdles such as regulatory clearances, shareholder approvals and financial targets. For example, the Company may invest in companies which have announced a review of strategic options including a possible sale of all or part of the company or a large potential cash distribution or companies that are to fall into or move out of bankruptcy levels. It will enter into such event driven strategies where the investment manager has a clear path to exit at the outset of the trade. Special situations are similar to major reorganizations but they are less generic, for example an arbitration ruling is a special situation where there are opportunities to benefit from long or short positions. Restructurings include the conversion of debt into equity and changes in the terms of governing stocks and bonds. Capital structure arbitrage means taking long and short positions in different securities of the same issuer. The Company will actively leverage the Investment Manager's relationships in the debt and equity markets to assist in originating ideas for investment. The Investment Manager will carry out in-depth forensic research on companies and credits throughout their cycle. The Investment Manager will collaborate with both creditors and investors, and maintain close information links with lawyers and debtors; where necessary, the Investment Manager will participate in creditor committees. The Investment Manager will also take into account technical and fundamental analysis. The Investment Manager considers the careful management of risk to be as important an element of successful portfolio management as investment selection, and will use a range of monitoring and analytical techniques to make risk management more rational and effective. The Company's portfolio of positions and investments will be continuously monitored with a view to maintaining appropriate levels of risk and volatility. The Company will actively manage downside risk through options, credit default swaps and other derivatives, especially for hedging purposes, in order to reduce losses. AUM reflects the aggregate of the various share classes and is denominated in USD. AUM no longer disclosed as of October 2012. The Fund incepted July 7, 2003. Formerly known as Trafalgar Recovery Fund.