Event driven

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Event driven

In the context of hedge funds, a style of management that combines many different types of hedge fund investing such as merger arbitrage, distressed securities and high yield investing, in conjunction with an important "event" that is supposed to unlock firm value (like a merger announcement, earnings announcement, or a regulator decision).

Event Driven

In hedge funds, an investment strategy of using many different investment strategies in reaction to various events. For example, if a merger is announced, a hedge fund may conduct transactions according to one strategy and, if the merger falls through, the fund may make transactions using a completely different strategy. The idea behind an event driven strategy is to use the best investment strategy befitting a particular moment in time.
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According to the firm, the strongest performing strategy year-to-date was the event driven strategy, which returned 2.
CS said that the strongest performing strategy year-to-date was the Event Driven strategy, which returned 2.
Credit Suisse's Illiquidity Premium factor also contributed positively to event driven strategy performance in 2013.
The event driven strategy was the strongest performing strategy in 2013, returning 10.