What is a multi strategy hedge fund?

What is a multi strategy hedge fund?

Multi-Strategy hedge funds combine a variety of different investment strategies that are generally uncorrelated, with the goal of delivering a less volatile return stream to investors. Each investment strategy is typically executed by a portfolio manager (PM) who is dedicated to their respective strategy.

What is event-driven hedge fund strategy?

From Wikipedia, the free encyclopedia. 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 tools do hedge funds use?

Summary. Before going into detail about the various hedge fund strategies, this chapter introduces the basic tools used by hedge funds to implement their trades, namely, buying, selling, short selling, buying on margin, using derivatives and leveraging.

What is event-driven global merger arbitrage?

Event-Driven Global Merger Arbitrage Strategy – This strategy focuses on 0-30 day events within the merger process. The team looks to uncover complicated situations where their primary research process provides an edge and generates alpha. The Partnership combines an opportunistic, event-driven investment approach with a value philosophy]

Are there any event driven hedge funds?

We appreciate any comments from our readers but please be aware information is constantly evolving and updates to this list of event driven hedge funds are frequent. Event driven investment (EDI) strategies such as merger arbitrage attempt to profit from the occurrence of pricing inefficiencies caused by a corporate event.

How much do merger arbitrage funds really earn?

If overnight interest rates are 4\% and a market-neutral fund earns the typical 80\% rebate, it will earn 3.2\% per annum (0.04 x 0.8) before fees, even if the portfolio is flat. But when rates are near zero, so is the rebate. A riskier version of market neutral, merger arbitrage derives its returns from takeover activity.

How do hedge funds buy shares in a merger?

After a share-exchange transaction is announced, the hedge fund manager may buy shares in the target company and short sell the buying company’s shares at the ratio prescribed by the merger agreement. The deal is subject to certain conditions: A favorable vote by the target company’s shareholders