Copying and distributing are prohibited without permission of the publisher
Feature: A strategy for all seasons
27 August 2010
The event driven hedge fund strategy has fared well during the global financial crisis and, despite a difficult second quarter this year, looks set to continue outperforming other strategies
While extreme market volatility during the global financial crisis saw many investors run for cover and seek a safe haven for their capital, it was also a time that had event driven hedge fund managers rubbing their hands in anticipation of the opportunities in front of them.
The event driven strategy involves investments, long or short, in the securities of corporations undergoing significant change. And there have been no shortage of major changes since September 2008.
Such ‘events’ often provide managers with a tangible catalyst by which they may be able to realise the expected change in value in the underlying security. Substantial profits can be generated by managers who correctly analyse the impact of the anticipated corporate event, predict the course of restructuring and take positions accordingly. Two years later, these opportunities are still being presented thick and fast.
In the first quarter of this year the even driven...
Access to this content is denied because you are not logged in. Please login to view this content
Already have an account?
Subscribe
Subscribers have unlimited access to all current and archive content. Start your
subscription today - click on the button below.
Free trial
Taking a free trial will give you access to the current issue for two weeks (excluding
some surveys and articles). Start your free trial today.
