Event-Driven Hedge Funds

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. An event-driven strategy exploits the tendency of a company's stock price to suffer during a period of change.

Subcategory of EventDriven Hedge Fund

Activist Strategy :

Activist investment strategy involves influencing shareholder voting rights to impact corporate governance.

An activist investment strategy involves three components:
  • Identyfying corporation that do not maximize shareholder wealth.
  • Investing in position that benefit from changes in corporate governance.
  • Executing favorable corporate governance change.

The Merger Arbitrage Strategy :

Merger arbitrage involves simultaneously purchasing and selling the respective stock of two merging companies to create riskless profits.

Event Driven Multi Strategy Funds :

Event Driven Multi strategy Fund diversify across various event driven strategies including corporate debt and equity securites.

Ticket Value :

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.

  • Minimum Ticket Size - INR 1 Cr
  • Tentative ROI - 17 - 19%

Fee Structure

☛ 2% AMC (Annual Maintenance Charges) on the Total Investments.

☛ Extra charge of 10% applicable if the return goes above the committed (Return on Investment.)