Event-Driven Hedge Fund Strategies

Very Easy Hedge Fund Strategies Event-driven

Hedge funds often employ various strategies to generate returns, one of which is known as 'Event-Driven' investing. This strategy seeks to capitalize on corporate events such as mergers, acquisitions, restructurings, or bankruptcies. Understanding this strategy is crucial for recognizing how hedge funds can exploit market inefficiencies driven by specific events.

Which of the following best describes a primary characteristic of Event-Driven hedge fund strategies?

Event-Driven strategies primarily focus on traditional long-only equity investments.

Event-Driven strategies aim to profit from price movements resulting from significant corporate events.

Event-Driven strategies invest solely in fixed-income securities.

Hint

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