Economic Times – Investors are flocking to hedge funds that bet on mergers and acquisitions (M&A) in the hope that a revival in takeover activity will help deliver more of the bumper returns they enjoyed in last year’s rally.
Prime brokers, who offer services to hedge funds, say such event-driven funds, which bet on announced takeovers as well as restructuring or even bankruptcies, top investor wish lists and more are set to be launched. Event-driven funds, which made 20.4% last year according to the Credit Suisse/Tremont hedge fund index, adopt strategies such as buying shares in a target company or betting on lower prices for the acquirer. London-based Tyrus Capital has raised more than $800 million for an event-driven fund, Senrigan Capital set up an Asian event-driven fund and Black’s Link Capital is also launching a similar fund, according to media report.
