Special Situations: Where Inefficiency Hides

Most of the market is efficient most of the time. Special situations are the corners where it stops being so — spin-offs where index funds are forced to sell, capital structures where bonds and equity disagree about the same firm's risk, short campaigns where the borrow market itself becomes part of the thesis. This path teaches the discipline of finding mispricings that arise from structure, not from sentiment, and of sizing trades that can stay irrational longer than you can stay solvent.