An investor who looks for bargains in the securities of troubled companies. Stocks that trade at prices sufficiently lower than their book values may present a worthwhile potential target. Typically, a grave dancer invests in low-priced shares that show signs of recovery in the future, or in shares that are low-priced as a result of a systemic decline in the market. In either case, this strategy is implemented in order to profit from the difference between a “recovered” price and the original price.

The grave dancer is also known as a bottom fisher.