http://www.futuresasia.com/html/modules.php?op=modload&name=Sections&file=index&req=printpage&artid=8

There is also fairly wide group of ,,special situations,, which over many years could be counted on to bring a nice annual return of 20% or better,with a minimum of overall risk to those who knew their way around in this field.They include intersecurity arbitrages,payouts or workouts in liquidations, protected hedges of certain kinds.

page 32
The intelligent investor


Brief account of the types of operations we engaged in during the thirty year life of Graham-Newman 1926-1956
Arbitrages,Liquidations,Related Hedges,Net current asset Issues

page 380
The intelligent investor


Related Hedges

The purchase of convertible bonds or convertible preferred shares, and simultaneous sale of the common stock into which they were exchangeable.The position ws established at close to a parity basis - at a small maximum loss if the senior issue had actually to be converted and the operations closed out in that way.But a profit would be made if the common stock fell consierably more than the senior issue,and the position closed out in the market 

page 380
The intelligent investor


The intelligent investor- book by Benjamin Graham updated with new commentary by Jason Zweig
ISBN-  0-06-055566-1
http://www.amazon.com/gp/reader/0060555661/ref=sib_dp_pt/102-1250738-8923340#reader-link