Special Situations Digest - #4

Clark Square Capital · Clark Square Capital's Ultimate Value · March 01, 2026 at 19:45 · ⏱ 89 min read  | Read on Substack ↗
Summary
This digest catalogs dozens of active activist campaigns, strategic reviews, M&A deals, and restructuring events across global markets. It serves as a screen for potential catalysts in small- to large-cap equities, with the caveat that all summaries are AI-generated and require independent verification. The sheer volume of special situations (from Beretta's proxy fight at Ruger to Elliott's board seats at Smucker) signals elevated corporate activity and potential alpha opportunities for event-driven investors.
  • •Kelso increased its stake in The Works (WRKS.L) to 7% and sent proposals to close a valuation gap; the retailer trades at 1.65x EV/EBITDA with £250M+ revenue.
  • •Beretta built a 10% stake in Sturm, Ruger (RGR) and launched a proxy fight for four board seats; Ruger adopted a poison pill.
  • •ADW Capital Management demanded a strategic review and liquidation of Compass Diversified (CODI), estimating $26+ per share liquidation value vs. $7.79 current price.
  • •Elliott Investment Management reached an agreement with JM Smucker (SJM) to add two directors, with an information-sharing agreement focused on shareholder value.
  • •Activist Irenic Capital made an unsolicited takeover bid for Reservoir Media (RSVR) at $10-11 per share, but needs support from 44% holder Wesbild.
  • •Kohl's (KSS) faces renewed activist pressure for strategic alternatives including asset sales or a full company sale.
  • •Liquidation plans: Elme Communities approved complete liquidation, Smithson Investment Trust shareholders voted 99.36% to liquidate, and Luminar Technologies filed a Chapter 11 plan proposing liquidation.
  • •M&A highlights: Gilead agreed to acquire Arcellx for $115/share (+68% premium), Boyd Gaming selling Sam's Town to Bally's, and Brink's acquiring NCR Atleos for $6.6B.
Read time 89 min
Length 89,855 chars
Category finance
Trade Ideas
Clark Square Capital Substack author, Clark Square Capital's Ultimate Value
ADW Capital (7.65% holder) demands liquidation, estimating $26+ per share vs. $7.79 current price. Structural discount to NAV from external management structure could be addressed.
ADW Capital (7.65% holder) demands liquidation, estimating $26+ per share vs. $7.79 current price. Structural discount to NAV from external management structure could be addressed. Risk: Liquidation process may be contentious and drawn out; asset sales could fall short of estimates.
CODI
Clark Square Capital Substack author, Clark Square Capital's Ultimate Value
Activist Galloway Capital increased stake and remains confident in comeback potential, previously pushing for store sales. Restaurant turnaround could materialize if refranchising or cost-cutting proc
Activist Galloway Capital increased stake and remains confident in comeback potential, previously pushing for store sales. Restaurant turnaround could materialize if refranchising or cost-cutting proceeds. Risk: High leverage (EV $303M vs. mkt cap $32M); competitive and margin risks.
NDLS
Clark Square Capital Substack author, Clark Square Capital's Ultimate Value
Elliott Investment Management added two directors and has an information-sharing agreement. Elliott's involvement historically drives margin expansion and portfolio optimization.
Elliott Investment Management added two directors and has an information-sharing agreement. Elliott's involvement historically drives margin expansion and portfolio optimization. Risk: Turnaround may take time; packaged food margins under pressure from inflation.
SJM
Clark Square Capital Substack author, Clark Square Capital's Ultimate Value
Renewed activist pressure for strategic alternatives, following prior aborted takeover offers. Potential sale, sale-leasebacks, or asset sales could unlock value given real estate holdings.
Renewed activist pressure for strategic alternatives, following prior aborted takeover offers. Potential sale, sale-leasebacks, or asset sales could unlock value given real estate holdings. Risk: Retail sector weakness; previous activist campaigns failed to produce a deal.
KSS
Clark Square Capital Substack author, Clark Square Capital's Ultimate Value
Beretta launched proxy fight for four board seats at the May 29 annual meeting, with a 10% stake. Change in board composition could unlock shareholder value through operational or strategic shifts.
Beretta launched proxy fight for four board seats at the May 29 annual meeting, with a 10% stake. Change in board composition could unlock shareholder value through operational or strategic shifts. Risk: Poison pill defense could entrench management; gun industry regulatory risks.
RGR
Clark Square Capital Substack author, Clark Square Capital's Ultimate Value
Activist Kelso increased stake and sent proposals to close valuation gap; company trades at 1.65x EV/EBITDA with £250M+ revenue and recent operational improvements. Catalyst for value realization.
Activist Kelso increased stake and sent proposals to close valuation gap; company trades at 1.65x EV/EBITDA with £250M+ revenue and recent operational improvements. Catalyst for value realization. Risk: Activist may not succeed; retail sector headwinds could persist.
WRKS.L

This newsletter, published March 01, 2026, features Clark Square Capital discussing CODI, NDLS, SJM, KSS, RGR, WRKS.L. 6 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Clark Square Capital  · Tickers: CODI, NDLS, SJM, KSS, RGR, WRKS.L