What is Special Opportunities Fund Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, Special Opportunities Fund's Probability of Financial Distress (%) is 0.00%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of Special Opportunities Fund's Probability of Financial Distress (%)
For the Asset Management subindustry, Special Opportunities Fund's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Special Opportunities Fund's Probability of Financial Distress (%) Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Special Opportunities Fund's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Special Opportunities Fund's Probability of Financial Distress (%) falls into.
Special Opportunities Fund Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | -12.89 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.00% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For banks, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
Special Opportunities Fund (Special Opportunities Fund) Business Description
Traded in Other Exchanges
N/A
Address
615 East Michigan Street, Milwaukee, WI, USA, 53202
Special Opportunities Fund Inc is the United States based closed-end diversified management investment company. Its investment objective is to have the total return. The company's investment portfolio consists of investment companies, common stocks, money market funds, commodity partnerships, preferred stocks, convertible bonds, liquidating trusts, promissory notes, senior unsecured notes, warrants, rights, corporate notes and corporate bonds. In addition, it also makes investments in construction materials, consumer finance, healthcare equipment and supplies, independent power and renewable electricity producers, insurance, personal products, professional services and real estate investment trusts.
Executives
| Phillip Goldstein |
director, officer: Chairman and Secretary |
60 HERITAGE DRIVE, PLEASANTVILLE NY 10570 |
| Gerald Hellerman |
director, officer: CCO |
5431 NW 21ST AVE., BOCA RATON FL 33496 |
| Rajeev P Das |
officer: Vice President |
250 PEHLE AVE., SUITE 708, SADDLE BROOK NJ 07663 |
| Charles C Walden |
director |
C/O INSURED MUNICIPAL INCOME FUND INC., 615 EAST MICHIGAN STREET, MILWAUKEE WI 53202 |
| Marc Lunder |
director |
C/O SPECIAL OPPORTUNITIES FUND, INC., 615 EAST MICHIGAN STREET, MILWAUKEE WI 53202 |
| Ben H Harris |
director |
C/O US BANCORP FUND SERVICES, 777 EAST WISCONSIN AVE., MILWAUKEE WI 53202 |
| Andrew Dakos |
director, officer: President |
250 PEHLE AVE., SUITE 708, SADDLE BROOK NJ 07663 |
| Steven Samuels |
other: Investment Adviser Principal |
72 COLEYTOWN ROAD, WESTPORT CT 06882 |
| Stephanie Darling |
other: Officer of the Inv. Adviser |
250 PEHLE AVE., SUITE 708, SADDLE BROOK NJ 07663 |
| James M Chadwick |
director |
C/O IMPERIAL HOLDINGS, INC., 701 PARK OF COMMERCE BLVD., #301, BOCA RATON FL 33487 |
| Relative Value Partners, Llc |
10 percent owner |
1033 SKOKIE BOULEVARD, SUITE 470, NORTHBROOK IL 60062 |
| Karpus Management, Inc. |
10 percent owner |
183 SULLY'S TRAIL, PITTSFORD NY 14534 |
| Investors Bulldog |
10 percent owner |
PARK 80 WEST PLAZA TWO, SUITE 750, SADDLE BROOK NJ 07663 |
| Full Value Advisors Llc |
10 percent owner |
PARK 80 WEST, 250 PEHLE AVE., SUITE 708, SADDLE BROOK NJ 07663 |
| Ag Ubs |
10 percent owner |
600 WASHINGTON BLVD., STAMFORD CT 06901 |
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