Cautious optimism for a better event-driven climate in 2012

Mon Feb 20, 2012


2011 was a year to forget for event-driven with global uncertainty putting deals on hold and companies into damage limitation mode. But 2012 is looking more optimistic, particularly for Chinese and Japanese firms, and event-driven’s fortunes could be on the turn


Anyone who has followed the Asian hedge funds industry for a more than a few years is likely to experience the feeling of déjà vu. As the markets rotate through cycles, hedge fund strategies go in and out of favour as the years go by. So it is with event-driven funds - the hot topic in late 2009 and early 2010, it is once again a strategy to watch, industry pundits say. But are event-driven funds bound to disappoint again, as they did last year, or are managers getting smarter at exploiting the opportunities?

It was not that long ago that the Asian event-driven space was virtually non-existent. Although the region presented event-driven opportunities, it was the big international funds that took advantage of them in multi-strategy funds. By 2009 the gap in the market had been identified, and over the next year there was a slew of event-driven launches, including...

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