Friday, August 27, 2010

Hedge funds: A strategy for all seasons

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

This article appears courtesy of Global Investor
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 rest of this article is available to subscribers only

Please Subscribe or take a Free Trial below.
Already a subscriber? Log in here.

Private Banking and Wealth Management Survey 2012

Awards for Excellence 2011

Hedge funds: A strategy for all seasons

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

The rest of this article is available to subscribers only

ECB: Two cheers for the three-year LTRO

Investment banking and market consolidation ramp up sector transformation

Equities: Tough year for active managers is good for ETFs

Risk management systems: Not fit for purpose

The banking model is broken and needs to change now

Abigail on Nomura: an ugly end to a messy episode

FX survey 2012 is now open - vote now

Macaskill on markets: Einhorn judgement could lead to greater scrutiny of CDS trading

ECB: Two cheers for the three-year LTRO

Investment banking and market consolidation ramp up sector transformation

Private Banking and Wealth Management Survey 2011 results index

Hedge funds: A strategy for all seasons

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

The rest of this article is available to subscribers only

Subscribe online today

Free 48 hour access