Reuters – Hedge fund selectors are backing managers who bet on corporate events such as mergers, bankruptcy or restructuring, believing there will be more “special situations” to exploit as firms battle through the downturn.
Funds of hedge funds believe “event-driven” managers will profit as distressed companies are forced to restructure their debts to fend off creditors, and those with cleaner balance sheets look to M&A to boost sales in a low-growth environment.
