Over the past decade, the hedge fund industry has seen a 25% drop in assets under management in standalone event-driven hedge funds. This contraction was driven by increased competition, reduced alpha due to information symmetry, and disappointing performance during market corrections. However, renewed opportunity from higher base rates, tighter financing conditions, and a resurgence in corporate activity could make event-driven strategies attractive again for allocators with a longer time horizon. Read our paper to learn more.
