Which is an example of an event-driven strategy?

An event-driven 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. Examples of corporate events include restructurings, mergers/acquisitions, bankruptcy, spinoffs, takeovers, and others.

What type of hedge funds use an event-driven strategy?

Hedge fund strategies range from long/short equity to market neutral. Merger arbitrage is a kind of event-driven strategy, which can also involve distressed companies.

What are event-driven funds?

Event-driven investing or Event-driven trading is a hedge fund investment strategy that seeks to exploit pricing inefficiencies that may occur before or after a corporate event, such as an earnings call, bankruptcy, merger, acquisition, or spinoff.

What is event arbitrage?

Event arbitrage refers to the group of trading strategies that place trades on the basis of the markets’ reaction to events. The events may be economic or industry-specific occurrences that consistently affect the securities of interest time and time again.

What is the definition of event driven investing?

Event-driven investing is a hedge fund investment strategy that seeks to exploit pricing inefficiencies that may occur before or after a corporate event, such as an earnings call, bankruptcy, merger, acquisition, or spinoff. In more recent times market practitioners have expanded this definition to include additional…

What are two types of event driven trading?

The event driven trading strategies are normally implemented through equities or credit securities such as bonds. There are different types of strategies in the event driven space. The two types of event driven investing are: Merger Arbitrage. Distressed debt.

Which is better distressed investing or event driven investing?

Distressed investing, on the other hand, tends to work best when the economy is performing poorly (because this is when companies tend to become distressed). While event-driven investing can be profitable, event-driven investors must be willing to accept some risk.

Which is the best event driven hedge fund?

New event-driven hedge funds were launched for example, New-York-based Kellner had launched event-driven hedge fund, Capital with Chris Pultz and California-based Omni Partners launched event-driven investing funds such as Omni Event Fund with John Melsom as chief investment officer.

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