A special situation is an unusual event that compels investors to buy a stock or other asset in the belief that its price will rise. The special situation by definition has little to do with the underlying fundamentals of the stock or any other rationale that investors ordinarily use to select investments.
Keeping this in consideration, what is an event-driven fund?
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.
In respect to this, which hedge fund strategy has the highest return?
Outside of equities, the highest–returning hedge fund strategies in 2020 were event-driven funds, which gained 9.3 percent for the year, according to HFR. Macro hedge funds returned 5.22 percent for the year, while HFR’s relative value index ended 2020 up 3.28 percent.
What is Goldman Sachs Special Situations Group?
The Goldman Sachs Special Situations Group (SSG) is a global multi-asset class business specialising in principal investing and lending on behalf of Goldman Sachs. SSG does not advise or invest funds provided by third-party investors.
What is restructuring and special situations?
The notion covers corporate restructuring and corporate transactions such as spin-offs, share repurchases, security issuance/repurchase, asset sales, or other catalyst-oriented situations. A conflict of shareholders is also considered a special situation.
What is an event in event-driven architecture?
An event–driven architecture uses events to trigger and communicate between decoupled services and is common in modern applications built with microservices. An event is a change in state, or an update, like an item being placed in a shopping cart on an e-commerce website.
What are the hedge fund strategies?
Hedge fund strategies encompass a broad range of risk tolerance and investment philosophies within a wide array of investments, including debt and equity securities, commodities, currencies, derivatives, real estate, and other investment vehicles.
What is a directional hedge fund strategy?
Investing in directional hedge funds
Directional funds are hedge funds that don’t hedge — at least not fully. Managers of directional funds maintain some exposure to the market, but they try to get higher-than-expected returns for the amount of risk that they take.
What is relative value hedge fund strategy?
Relative value strategies are focused on identifying discrepancies in prices among securities that share similar economic or financial characteristics (e.g., 2-year and 10-year U.S. Treasury securities).
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 meaning of event-driven programming?
Simply put, event–driven programming is when a program is designed to respond to user engagement in various forms. It is known as a programming paradigm in which the flow of program execution is determined by “events.” Events are any user interaction, such as a click or key press, in response to prompt from the system.
Does Warren Buffett have a hedge fund?
No. Technically speaking Berkshire Hathaway is not a hedge fund, it is a holding company. Although Berkshire operates similarly to a hedge fund in terms of investing in stocks and other securities, it does not take performance fees based on the positive returns generated every year.
Will hedge funds exist in 10 years?
Key Takeaways. Once high-flying alternative investments, hedge funds lagged behind much of the market over the past several years. … Overall, the consensus is that hedge funds will continue to grow but will adapt to lower fees, greater use of technology, and increased access to retail investors.
What is the average return on a hedge fund?
Average gains of +4.00% lifted YTD average returns to +11.02%, past the level in 2019 (+10.07%) and to the highest level since 2009 (+19.44%). While average returns in 2020 were elevated, there have been several years of similar returns since 2009 (+10% in 2019, +9% in 2017, +10% in 2013 and +11% in 2010).