Event-driven gets a bounce in January.
After a poor showing in 2008, event-driven funds bounced back in January. On the back of a late-December rally, funds following this strategy gained a median 1.55%, according to the Absolute Return Event Driven Index.
By comparison, the broader markets had a horrific January, with declines of 8.57% for the S&P 500 (its worst January return in its 133 years) and 11.12% for the Russell 2000. In 2008, event-driven funds lost a median 17% as a number of supersized merger and acquisition deals fell apart, including BHP Billiton's attempt to acquire Rio Tinto (valued at $66 billion) and