Event-driven hedge funds are proving very popular with investors, with money pouring in over the past few months amid an uptick in mergers and acquisitions and as some seek to diversify away from overcrowded credit trades, according alternative investments researcher eVestment. In May alone, event-driven strategies had attracted US$6bn of inflows, according to eVestment, meaning a total of US$31bn has been taken in since the start of the year. Such inflows make it one of the most popular strategies that the research firm tracks. Increasingly activists are taking a small stake in a company and then lobbying for changes rather than merely buying in the hope the stock succumbs to a takeover offer.
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