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Event-driven strategies principally invest in the equity and debt securities of companies involved in a variety of corporate actions.

Value of an initial $1,000 investment

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. The total return of an investment is only one measure of performance. Performance should never be the sole consideration when making an investment decision. There is no guarantee that any investment will achieve its objectives, generate profits or avoid losses. The referenced indices are shown for general market comparisons and are not meant to represent any particular Fund. An investor cannot invest directly in an index. Moreover, indices do not reflect commissions or fees that may be charged to an investment product based on the index, which may materially affect the performance data presented. US stocks represented by the S&P 500 Total Return Index; Event-Ddriven represented by the HFRI Event-Driven (Total) Index. Bull markets: 01/87-08/00, 10/02-09/07, 03/09-present; tech wreck: 09/00-09/02; credit crisis: 10/07-02/09. Source: Altegris.

Event-driven strategies principally invest in the equity and debt securities of companies involved in a variety of corporate actions.

Event-driven strategies vs. traditional asset classes

The charts below show how event-driven strategies historically stack up against traditional asset classes.

Calendar Year Performance: Event-Driven vs US Stocks

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Event-driven represented by the HFRI Event-Driven (Total) Index. See index descriptions below.

Performance Statistics:
Event-Driven vs. US Stocks

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Event-driven represented by the HFRI Event-Driven (Total) Index. See index descriptions below.

Annualized 10-, 5-, 3- and 1-Year Returns

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Event-driven represented by the HFRI Event-Driven (Total) Index. See index descriptions below.

Standard Deviation*

*Standard deviation is a statistical measure of how consistent returns are over time; a lower standard deviation indicates historically less volatility.

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Event-driven represented by the HFRI Event-Driven (Total) Index. See index descriptions below.

Event-Driven Correlation*

*Correlation is a statistical measure of how two securities move in relation to each other.

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Event-driven represented by the HFRI Event-Driven (Total) Index. See index descriptions below.

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. The referenced indices are shown for general market comparisons and are not meant to represent any particular Fund. An investor cannot invest directly in an index. Moreover, indices do not reflect commissions or fees that may be charged to an investment product based on the index, which may materially affect the performance data presented. US Stocks represented by S&P 500 Total Return Index; US Bonds represented by Barclays Capital US Aggregate Bond Index; International Stocks represented by MSCI EAFE Index; Commodities represented by S&P GSCI Total Return Index; Event-driven represented by the HFRI Event-Driven (Total) Index. Source: Altegris.

A focus on corporate actions

Event-driven strategies typically invest in the equity and debt securities of companies involved in a wide variety of corporate events. This strategy has the ability to take long or short positions across a variety of sectors such as energy, technology, communications, transportation, and healthcare.

The success of event-driven strategies is highly reliant upon the skill of a manager to find special circumstances surrounding a corporation to achieve strong risk-adjusted returns. Flexible liquidity requirements are key to the success of event driven strategies since investment scenarios can sometimes take considerable time to materialize.

  • Situational arbitrage: These actions include (but are not limited to) mergers, spin-offs, restructurings, litigations, debt exchanges, shareholder buybacks, proxy contests, security issuance, or other capital structure adjustments. In addition, event-driven funds may invest in companies that are stressed or in various stages of the bankruptcy process.
  • Time- & company-specific: Investment theses are highly predicated upon the presence and timing of individual company events and managers typically seek to diversify their portfolios with a variety of company-specific transactions.

Finding opportunity in change










Event-driven strategies can invest both long and short, typically unconstrained by investment style, in multiple sectors across global markets.

Event-driven strategies have historically delivered strong performance with lower volatility compared to traditional asset classes. The potential diversification benefits of this strategy can be attributed to the variety of corporate situations a manager may be able to capitalize on by utilizing both equity and debt investments.

  • Strong historical performance: Event-driven strategies, as measured by the HFRI Event-Driven (Total) Index, delivered an impressive historical total return over the past 20 years. Of course, past performance is not indicative of future results.
  • Lower historical volatility: Event-driven strategies’ historically stronger returns have been delivered with lower volatility compared to traditional asset classes.
  • Diverse strategy: There are numerous event-driven philosophies and underlying sectors a manager may utilize in the investment process. Event-driven managers typically utilize an opportunistic approach based on comprehensive, fundamental research. The diverse nature of event-driven strategies gives managers the opportunity to potentially benefit from long or short exposures across multiple sectors. Of course, there is no guarantee that any investment product will achieve its objectives, generate profits or avoid losses.

See the Glossary for term definitions.

Information and education to help you understand event-driven strategies

As part of the Altegris Academy, Altegris brings you a variety of resource materials that will help you better understand the potential advantages of event-driven strategies.