Special Situation Fonds

This paper provides first evidence about fund characteristics, absolute as well as risk-adjusted performance of Special Situation Funds, consisting out of hedge funds and mutual funds. Beside considerable differences in the characteristics, we document for both categories of funds a significant alpha and a higher Sharpe Ratio than the overall market during the time period from 1998 to 2012. In addition, hedge funds are less correlated to the stock market than mutual funds