Event driven hedge fund strategies pdf

This involves eventdriven managers seeking to profit from security pricing inefficiencies that can occur when companies are involved in a range of corporate events, which includes takeovers, restructures, mergers, capital raising, share buybacks, spinoffs, asset sales, liquidations, bankruptcy, capital returns and many others. The facts event driven strategies funds in focus event driven strategies funds in focus we focus on event driven strategies hedge funds, including a breakdown of substrategies utilized and where the. Key characteristics distinguishing hedge funds and their strategies from traditional investments include the following. Eventdriven strategies are equity oriented strategies involving investments, long or short, in the securities of corporations undergoing significant change such as spinoffs, mergers, liquidations, bankruptcies and other corporate events. Equity substrategies are generally driven by companyspecific events, and are, therefore, usually principally subject to securityspecific risk. These are primarily hedge funds, private equity firms and some mutual funds. It is most often used by private equity or hedge funds because it requires necessary expertise to analyze corporate events for successful execution. Event driven investment managers maintain positions in companies currently or prospectively involved in corporate transactions including mergers. Hedge funds are an important subset of the alternative investments space.

Some hedge funds choose to focus on eventdriven strategies. The camelot eventdriven fund aims to deliver a traditional hedge fund strategy to mutual fund investors. On the other hand, the least profitable strategies in 2019. Equity long bias, emerging market, cdo, and event driven with returns ranging from 5,38% to 3,76%.

Event driven strategies hedge funds all hedge funds source. This is due to the large amount of expertise necessary in analysing corporate events to execute the strategy successfully. This chapter explores some of the strategies used by eventdriven hedge funds, namely merger arbitrage, trading distressed securities, special situations, and activism. Hedge fund strategies range from longshort equity to market neutral. Hedge funds strategies market trend strategies event driven strategies arbitrage strategies multi strategy. Exploring the benefits of equity eventdriven strategies ubs. Event driven strategies distressed securities buys equity, debt, or trade claims at deep discounts of companies in or facing bankruptcy or reorganization chapter 11 of the united states bankruptcy code. List of distressedeventdriven hedge funds excel format. Exploring the benefits of equity eventdriven strategies. Hfr hedge fund strategy definitions event driven hedge. Event driven investment strategies hedge fund strategies. Market efficiency and hedge fund trading strategies edhec risk. Event driven strategies entail investing in companies involved, or potentially involved, in significant corporate actions. Hedge fund managers perform better when entry barriers to the strategy are high.

Merger arbitrage is a kind of eventdriven strategy, which can also involve distressed companies. Type of hedge funds fund of funds managed accounts single manager funds. The multiple strategies of hedge funds investopedia. Russell investments eventdriven investment strategies june 2014 frank russell company owns the russell trademarks used in this material. The hedge fund journal is a monthly magazine focusing on the global hedge fund industry. Eventdriven investing strategies are typically used only by large institutional investors, such as hedge funds and private equity firms. Some argue that investing in hedge funds is a key way to access the very best investment.

This involves eventdriven managers seeking to profit from security pricing inefficiencies that can occur when companies are. This chapter explores some of the strategies used by eventdriven hedge funds, namely merger arbitrage, trading distressed securities, special situations, and. Eventdriven hedge fund strategies oxford scholarship. Profits from the markets lack of understanding of the true value of the deeply. An eventdriven strategy is a type of investment strategy that attempts to take advantage of temporary stock mispricing, which can occur before or after a corporate event takes place.

The eventdriven hedge fund list contains detailed contact information for more than 280 distressed and eventdriven hedge funds throughout the world including, the us, uk, switzerland, china, japan. Event driven strategy definitions strategy is the realization of an event at the corporate level. Longshort equity and eventdriven strategies may have less beta exposure than simple, longonly beta allocations. As a consequence of the event, arbitrage strategies event driven. Change in status or delay of events may affect the price of securities purchased. Event driven hedge fund strategies linkedin slideshare. An event driven strategy is a type of investment strategy that attempts to take advantage of temporary stock mispricing that can occur before or after a corporate. Deutsche bank alternative investment survey dyment et al. Sophisticated or large institutional investors typically use event driven investment strategies. Thats because traditional equity investors, including managers of. The credit substrategies may be driven by companyspecific events, but they may also be driven by changes in the way the market perceives.