Event Driven funds looking to outperform should focus on Spinoffs a lot more if they are properly looking to beat global benchmarks. The Event Driven strategy is meant to capture asset sales, bankruptcies, reorganizations, restructurings, Spinoffs, plus forms of litigation to generate value ideas that’ll outperform markets and give superior returns.
+4.6% is what the HFR Index of Event Driven Funds has delivered year to date (to Nov 30). Alternatively, The Spinoff Report’s top Spinoff investment ideas portfolio has delivered +18.8%.
The idea of an Event Driven asset class is that all are meant to have little correlation with the broader equity or bond benchmarks. Interestingly, the below demonstrates where the real value has been delivered from over the past five years…
5 Year Track Record / Performance?*
|+14%||Nasdaq Comp. Index|
|-4%||S&P 500 Index|
|-8%||HFRX Event Driven Index|
|-18%||MSCI World Index|
*Dec 3, 2007 to Nov 30, 2012
“With our unique edge, we pride ourselves on being able make value and catalyst driven funds better returns than the market via our proven idea generation, deep value analysis and trusted recommendations”, comments, Ryan Mendy, COO of The Spinoff Report
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