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Event-Driven Related News
 in chronological order

 See also: Event-Driven Related Books, Event-Driven Related Scholarly Papers, or Event-Driven Home Page.

Table of Contents:
 

Susquehanna Financial Group Appoints Stephen Velgot to New Post in Equity Research Division

November 8, 2006
From PR Newswire:
 Susquehanna Financial Group, LLLP today announced the appointment of Stephen Velgot as an event driven and special situations analyst. He will report to Jack Micenko, Global Head of Equity Research.

In his newly created role, Mr. Velgot will work alongside the firm's sector analysts, sales traders and market intelligence team to produce fundamental analysis ahead of and in step with meaningful sector and market events.

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'World Event Trading Report' Reveals Little Known Details on Legendary Event Driven Trading Successes and Illustrates How Any Trader Can Repeat Them

November 1, 2006
From BusinessWire:
 Research and Markets (http://www.researchandmarkets.com/reports/c73307) has announced the addition of “World Event Trading: How to Analyze and Profit from Today's Headlines” to their offering.

World Event Trading is divided into three sections: infectious diseases; natural disasters; and politics (terrorist attacks, government changeover, war, etc.). Each section ends with a chapter titled "Future Risks and Trade" that focuses on what the trader can learn for future trades. Busch will teach the reader, through analysis and examples, how to anticipate which trades will be profitable should another similar event occur. Busch will also go into detail about why certain traders were successful and how to replicate them. He will also discuss the importance of understanding the "mood" of the market prior to the event.

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Market likely to mirror event-driven trends

October 15, 2006
From The Economic Times:
 At various points in this four-year bull run investors have wondered where and when a bubble situation would arise. Last week showed the first clear signs of irrational exuberance. While the Sensex level of 17,000 was itself a bit stretched, the rise thereafter has been crazy. Fundamentals would hardly explain the kind of frenzied rise.

At these levels, the Sensex is trading at a trailing PE ratio of around 25x. Once again, this is not sustainable, since earnings of Indian corporates cannot rise at 25x over a sustained period. Over the past five-year period, beginning FY03, earnings have risen by around 35% annually. This performance is getting increasingly difficult to continue. The first quarter of FY08 saw a net profit growth of only 8%, if you stripped out other income.

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Funds of hedge funds see opportunities in turbulence

October 12, 2006
From Reuters UK:
 Market turbulence has created windows of opportunity for managers of funds of hedge funds eager to scavenge profits from ongoing volatility even while they are wary of an economic downturn, a Reuters poll showed.

The quarterly survey of 12 such managers in the U.S. and Europe showed that six still see event-driven strategies as delivering the best returns in the final three months of the year, and first quarter of 2008.

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UBP Launches Event Driven, Non-Directional Funds of Funds

July 9, 2006
From FINalternatives:
 New York-based UBP Asset Management last month launched two new funds of funds in response to investor demand.

The Selectinvest Event Driven offering invests in event-driven managers and will allocate capital to debt, equity and multi-strategy funds at opportunistic times throughout the investment cycle, according to the firm. The Selectinvest Alternative Balanced Fund will invest in predominantly non-directional hedge funds and is designed to offer institutional investors a beta-neutral vehicle to be used either as a stand alone, core alternative investment or part of a portable alpha program.

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NewSmith Launches $100M European Event-Driven Hedge Fund

July 6, 2006
From FINalternatives:
 London-based NewSmith Capital Partners last month launched a $100 million multi-strategy event-driven hedge fund, and the new offering is off to a strong start.

The NewSmith European Fund launched on June 11, employing three strategies to trade Europe-listed stocks.

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Event-driven hedge funds see record inflows

June 18, 2006
From MarketWatch:
 Event-driven and short-selling hedge funds pulled in a record amount of money during the first quarter, according to a report released by Lipper on Monday.

Event-driven managers saw record net inflows of $9.83 billion in the quarter and now oversee $244 billion in assets, Lipper found.

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Twin Lights Searches For Global Event-Driven, Equity Managers

June 15, 2006
From FINalternatives:
 Fund of funds shop Twin Lights Capital is looking for more exposure to non-U.S. event driven hedge funds and non-U.S. equity managers to spice up its portfolio.

The firm’s $35 million Twin Lights Fund, which launched in August 2005, currently allocates the bulk of its portfolio to equity managers. “We want to reduce our exposure to the U.S. and we’re looking for more non-U.S. and global managers,” said Lee Raker, Twin Lights’ principal. “We’re looking to play the equities market a little bit differently than just pure long/short. Our long/short plays are a combination of concentrated plays with focused positions and fundamental work, coupled with managers who are trading portfolios and have larger numbers of positions. We also have equity event strategies in various shapes and firms whether it be semi-activists or true event managers.”

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Event-Driven Is The New Black

May 30, 2006
From FINalternatives:
 Event-driven funds have been the place to be over the past year, and may stay that way for a long time to come, according to a new report from Credit Suisse.

Event-driven funds—which include distressed, multi-strategy and risk arbitrage funds—have returned 15.62% over the past 12 months, the best of any strategy tracked by the Credit Suisse/Tremont Hedge Fund Index. But, more importantly, the strategy has proven itself in both bull and bear markets: According to CS, event-driven managers have been negatively correlated to the market when it’s falling, and are increasingly positively-correlated during market rallies.

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New Credit Suisse/Tremont Hedge Fund Index research reveals that Event Driven hedge funds were the top performing sector over the past 12 months, returning 15.62%*

May 30, 2006
From BusinessWire:
 Credit Suisse Index Co., Inc., today released its latest industry commentary, Event Driven for All Seasons, disclosing that the Event Driven hedge fund strategy, which includes the Distressed, Multi-Strategy and Risk Arbitrage sub-sectors, was the top performing sector over the past 12 months, returning 15.62%. The sector has benefited from a wide range of opportunities directly related to corporate capital structures presented in all market cycles.

“Event Driven hedge fund managers can shift exposures based upon opportunities in: merger and acquisition activity, global market conditions, distressed corporate situations and other corporate activities to produce attractive returns across both short and long term investment horizons,” according to the Credit Suisse Index Co., Inc. “Event Driven hedge funds, as represented by the Credit Suisse/Tremont Event Driven Hedge Fund Index, have historically produced high returns with low levels of volatility for the past ten years with a Sharpe Ratio of 1.26.”

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Boone Capital Launches Event-Driven, Special Situations Fund

May 8, 2006
From FINalternatives:
 New York-based Boone Capital Management this month launched its Boone Capital Levered Fund, an event-driven and special situations hedge fund, with $15 million. The new offering will be managed alongside the firm’s flagship Boone Capital Partners Fund.

The fund will invest in small- and mid-cap companies, particularly companies with significant leverage, going through operational restructuring or capital refinancing. “We look at both the debt and equity of those companies,” said David Markus, Boone’s co-founder.

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FIM Launches Event-Driven Fund

April 10, 2006
From FINalternatives:
 U.K.-based fund of hedge funds adviser FIM Advisers is adding to its family of funds with the launch of the FIM Event Driven Fund. The new Cayman Islands-domiciled offering, which brings FIM’s total lineup to nine, will launch on May 1 with assets of around US$50 million provided by the firm’s existing long-term clients.

The new vehicle will invest in 15 to18 underlying managers and seeks to outperform the HFR Event Driven Index on a gross basis, which has historically generated annualized returns almost 12% over the last five years, according to the firm.

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F&C to establish fund for event driven hedge funds

March 1, 2006
From FT Alphaville:
 F&C Asset Management is planning to raise up to £120m for a new London-listed fund of hedge funds as the group targets the growing interest in stock market-traded alternative investments. The new fund will invest exclusively in so-called event-driven hedge funds, which bet on M&A, share buy-backs and other corporate events. Event-driven funds include aggressive activist funds that pressure companies to change strategy. The F&C Event-Driven fund, structured as a Guernsey-based company, is aiming to raise £100m-£120m in a float by May, including £80m its existing investors have already committed to contribute.

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An Obscure, Intriguing Fund Worth Discovering

February 26, 2006
From Kiplinger.com:
 The Pennsylvania Avenue Event-Driven fund comes out of a classic mom-and-pop shop. Only the mom is absent. Pop in this case is Thomas Kirchner, a 39-year old native of Germany. Working out of his apartment in the upper Northwest section of Washington, D.C., he not only picks the fund's stocks and bonds, but also answers the phone and stuffs envelopes with prospectuses and shareholder reports.

Truth be told, the work is not as onerous as it seems. The fund (symbol PAEDX), which was launched in November 2003, is small, really small. Assets total just $2.5 million, and there are only 200 shareholders. The occasional dollop of publicity the fund has received has not led to a stampede of would-be investors.

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New Event-Driven Fund In Fast Start

January 31, 2006
From FINalternatives:
 Christopher DeMuth knows how to manage expectations.

The former Mangan & McColl Partners analyst’s new hedge fund had a big first month, returning 3.28% through Jan. 26—better than three times his target—but DeMuth is more interested in some of the other metrics Rangeley Capital is producing.

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Rosseau Ranked No.1 Global Event-Driven Hedge Fund for 2006

January 30, 2006
From CNW Telbec:
 Rosseau Limited Partnership's 121.7% return earned it the No.1 ranking globally in the Event-Driven category by the Lipper/TASS Database for 2006. The fund's offshore equivalent, G-10 Rosseau Special Situations Fund, took the No.2 spot in 2006 with its 112.5% return. Globally, across all strategies, Rosseau Asset Management's two funds ranked No.4 and No.5 overall.

Warren Irwin, founder and portfolio manager, is pleased with Rosseau's extraordinary achievements in 2006, but is especially proud of Rosseau LP's 34.7% annual compound rate of return over eight years. "In 2006 we earned a lot of attention with our triple digit returns, but the real story is our ability to compound our investors' money over the long-term," said Irwin. In 2006, special situations in the resource sector accounted for the bulk of the returns, but over the long-term, Rosseau has made money in a wide variety of industry sectors using many different investment strategies.

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Representatives of Pirate Capital and Mirant to Discuss Maximization of Stockholder Value

June 14, 2006
From The Houston Chronicle:
 Pirate Capital LLC announced today that representatives of Mirant Corporation (NYSE: MIR) and Pirate Capital have agreed to meet on June 21, 2006 to discuss their respective views as to the best approach to maximize stockholder value at Mirant.

Thomas R. Hudson Jr., Managing Member of Pirate Capital, said, "We look forward to more fully presenting our views to the company and we anticipate a frank and productive discussion."

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Tudor team splits to launch fund

June 9, 2006
From Telegraph.co.uk:
 One of London's leading event-driven hedge teams is within months of launching a $500m fund after it quit the United States hedge fund powerhouse Tudor Investment.

The team, which is headed by Canadian Chris Gate, plans to launch Oceanwood Capital in the first week of August in one of the largest fund-raisings of the sector this year.

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New Manager Recruiting Researchers, Trader, CFO

March 14, 2006
From Institutional Investor:
 Octavian Advisors, a global special situations manager that was launched on March 7, is seeking to hire three people for its research team, a trader and a cfo over the next few months. The research team, consisting of senior and junior people, will analyze opportunities and help generate ideas, said Richard Hurowitz, chairman and cio. Senior analysts should have at least five years experience on the buy side. Junior researchers could come from the buy side, investment banking or consulting. "Overall we are trying to attract people who have excelled in their fields and who have expertise in international investing or have international backgrounds," he said. New York-based Octavian is seeking a trader with several years of event-driven and risk arbitrage experience. The firm is also seeking someone to take on either a cfo or controller role, to run accounting and the infrastructure of the business.

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Emerging Markets Sector Invest Index Is Up 6.90% Net In January

February 16, 2006
From HedgeCo.Net:
 The Credit Suisse/Tremont Hedge Fund Index is up 3.23% for January 2006, which is the highest monthly return since August 2000, according to Oliver Schupp, President of the Credit Suisse Tremont Index LLC and senior member of the Credit Suisse Funds and Alternative Solutions Group.

“Hedge funds continued their strong performance from December into January. The global appetite for risk and strong equity markets pushed the Long/Short sector up 4.18% and the Emerging Markets sector up 5.76% for January 2006,” said Mr. Schupp. “Convertible Arbitrage managers reported a performance of 2.75%, the strongest in 3 years. The managers profited from higher valuations and increased inefficiencies after a year of numerous fund closures in 2005.”

“Event Driven hedge fund managers had one of their strongest months in recent history, taking advantage of a tightened credit spread throughout the month and an increase in announced mergers and acquisitions after the start of the new year,” said Robert I. Schulman, Chief Executive Officer of Tremont Capital Management, Inc. “Global Macro managers started the year strong, reporting 3.37% for January. They were able to generate returns through long equity exposure as well as from short positions in European and Japanese bonds.”

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The alpha in an event

February 9, 2006
From HedgeCo.Net:
 In the hedge fund arena, one quality that managers highlight is their ability to generate alpha. Alpha can be described as the return a manager is able to generate by putting together a portfolio of securities that will outperform the market within a specified time frame. He or she is able to do this by ensuring that this portfolio has little correlation with the overall market. Generating incremental returns above the market while hedging the market exposure, known as beta, is a delicate balancing act that a manager has to carry out. This is even more difficult for managers who employ the event driven strategy.

Event driven hedge fund managers have found that, to deliver positive alpha to their clients, they have to be ready to change their approach to suit the circumstances (this could be the deal or the market), and they need to take fewer positions, control the liquidity of their fund, and, more importantly, play an activist role.

An event may be the issuing of a press release by a company, a company making an earnings announcement, or a political or general world event. Traditionally, event driven hedge fund managers are those who take significant positions in a certain number of companies with ‘special situations’. This could mean companies with distressed stock prices, mergers, takeovers, share buy-backs or capital returns. The objective of the manager is to analyse the effect the corporate action would have on security prices, instead of focusing on the company’s earnings and dividend streams. The hedge fund would normally take a long position on the company being acquired and a short position on the acquirer. Owing to the position they have taken, they are not as sensitive to market movements. They tend to consistently generate high risk-adjusted returns that have little correlation with the market.

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BluMont Canadian Opportunities Fund Reaches Five-Year Performance

January 24, 2006
From CCN Matthews:
 BluMont Capital Inc. (TSX VENTURE:BCC) and its wholly-owned subsidiary, BluMont Capital Corporation ("BluMont") are pleased to announce that the BluMont Canadian Opportunities Fund (the "Fund"), which employs multiple investment styles with low correlation to one another, has reached its five-year performance anniversary. Established January 1, 2001, the Fund has produced an annualized return of 13.02% (since inception) versus 6.62% for the S&P/TSX Total Return Index Value and 7.97% for the HFRI Fund Weighted Index over the same period. Moreover, the Fund has produced positive returns each of the past five calendar years with annualized volatility of 9.82% (versus 14.00% for the S&P/TSX TRIV) and a Sharpe Ratio of 1.07.

The BluMont Canadian Opportunities Fund is the 9th-ranked alternative strategies fund in the 5-year category on GlobeFund.

The Fund strives to deliver consistently positive returns each year independent of the performance of the S&P/TSX Index by investing in multiple investment styles with low correlation to each other that also mitigate the overall risk of the portfolio through various hedging strategies by combining complementary and non-correlated strategies currently managed 45% by BluMont Capital, 25% by Hillsdale Investment Management, 10% by SciVest Capital Management, 10% by Integrated Managed Futures Corp and 10% by Orchard Asset Management.

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Goldman Looks Golden

January 23, 2006
From Forbes:
 Goldman Sachs (nyse: GS - news - people ) is a global investment banking firm engaged in financial advisory services, underwriting, broker/dealer activity, principal investing and asset management. About 60% of its revenues are generated in the United States. We added this stock to the recommended list on Dec. 12.

The company's largest segment is trading and principal investments, which generated 70% of 2005 net revenues. This segment is responsible for market-making activities and for trading equities, fixed income securities, currencies, commodities and related derivatives. It is also engaged in investing and trading the firm's own accounts, referred to as principal investments, using equity arbitrage, event-driven and other strategies commonly found in the hedge fund industry.

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The Citigroup Private Bank's five major investment views for 2006

January 22, 2006
From AME Info:
 Dubai-Clients of The Citigroup Private Bank in the Middle East were provided an overview of the investment outlook for 2006 by the private bank's foremost wealth management experts at a specially convened seminar.

The bank advises high net worth individuals and families with a minimum net worth of USD 10 million, including a quarter of the Forbes list of billionaires globally.

As investors weigh up the positive signals (buoyant economic growth and rising corporate earnings) in the investment landscape against the risks (high energy prices and rising interest rates), global experts at The Citigroup Private Bank have sketched out five key themes to help shape its clients' portfolios and structure their investment decisions in 2006 and beyond.

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The Future of Hedge Funds

January 19, 2006
From PR Newswire:
 Hedge funds were up an average of 1.54% in December, according to the HedgeFund.net-PerTrac Universes. The top 25% of hedge funds gained an average of 2.31%, while the bottom 25% of hedge funds were up an average of 0.17% for the month. Value sector funds, the month's top performing strategy, were up an average of 2.58% in December. By comparison, the S&P 500 was up 0.10% during the month.

The 2005 average gain for hedge funds was 9.36%. The top 25% of hedge funds gained 12.84% for the year, while the bottom 25% were up 2.85% over the same period. The S&P 500 was up 3.00% on average in 2005.

Hedge funds included in these calculations were up 1.83% on average in November. The top 25% of hedge funds gained an average of 2.63% in November, while the bottom 25% was up an average of 0.45% during the same period.

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Hedge fund returns falling and unlikely to bounce back soon

January 16, 2006
From MoneyManagement.com.au:
 Returns from hedge funds have declined over the past five years and are not expected to return to levels seen in the 1990s in the short-term, despite optimism from hedge fund managers.

Most managers are forecasting returns from hedge funds in the range of 0 to 5 per cent above cash in the next 12 months, but believe longer term returns will reach targets of 5 to 10 per cent above cash, according to a survey conducted by Mercer Human Resources Consulting late last year.

However, Mercer analysts claim managers are adjusting to lower returns in the current environment and are unlikely to achieve levels of returns seen in previous years in the near future.

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December Rally Adds to Hedge Fund Returns for 2005

January 11, 2006
From PR Newswire:
 Standard & Poor's, the world's leading index provider, announced today that hedge fund returns, as measured by the S&P Hedge Fund Index (S&P HFI), gained 0.26% in December as a widespread reduction in risk appetite drove performance down during the month. For calendar year 2005, the S&P HFI rose 2.28%. The S&P Equity Long/Short Index (S&P ELSI) was the best performing index within the S&P Hedge Fund Index Series during the year, gaining 9.24%.

According to Standard & Poor's Senior Hedge Fund Specialist, Justin Dew, hedge fund performance during the month of December was dominated by three main occurrences: a strong equity market rally in many Asian markets (notably Japan), a correlated decline in the U.S. dollar versus the yen, and a temporary inversion of the yield curve.

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Event-Driven, Distressed Funds Lead DJ Index

January 10, 2006
From Black Enterprise:
 Dow Jones reports that event-driven strategies performed well in what was an uneventful year for the stock market in general.

Both event-driven and distressed managers pulled through to each top 6% in 2005, according to Dow Jones Hedge Fund Index officials, doing slightly better than equities. The Dow Jones Wilshire 5000 index was up 6.38% at year-end.

Last month, event-driven managers gained 1.53% and returned 6.5% net of fees for the year through Dec. 31.

Event-driven managers generally capitalize on arbitrage opportunities stemming from the market's reaction to specific transactions. An increase in merger and acquisition activity may be behind event-driven managers' success, as most did battle with lower levels of market volatility. While 2005 performance was better than most other strategies, event-driven managers did better in 2004, when they were up 10.36%.

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Hedge Fund Sale: Dialing For Dollars

January 9, 2006
From Institutional Investor:
 A change of course wasn't enough to right Severn River Capital Management's sinking ship, and now the Greenwich, Conn.-based hedge fund is headed for the scrap yard. After its two funds, Severn River Capital Fund and Severn River Capital Partners, lost 8% of their assets since launching in 2004, the hedge fund is in the process of returning what's left to investors. Last year, the firm attempted a reversal of fortune by switching from a multi-strategy approach to an event-driven one, but it apparently didn't help.

"We continue to focus on liquidating our positions and fund assets in a way that minimizes liquidation costs," Chief Operating Officer Eric Wood wrote in an e-mail to investors last week.

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Stocks eclipsed hedge fund returns in 2005

January 9, 2006
From Reuters Italia:
 Stock markets made investors nearly three times more than the average hedge fund last year, according to French business school Edhec.

Hedge fund returns averaged 3.75 percent last year compared with 13.74 percent for the MSCI index of world stocks and 6.78 percent for the Lehman global bond index, Edhec said in a research note last week.

Within the hedge fund industry strategies that used equities were the best performers last year, but they too failed to return what investors would have earned on stocks.

 Long/short equity hedge funds, those that buy and short sell -- sell a security on the expectation of buying it back cheaper at a later date -- returned 2.18 percent in December and 6.78 percent last year.

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