We define “event-driven” as strategies seeking to profit from investments in companies experiencing a material change in their ownership or capital structure.
- The opportunity set includes investing in stocks undergoing mergers, as well as investing in companies engaging in major stock or debt repurchases, divestitures, spin-offs, and other key events in the corporate life-cycle
- One of the hallmarks of event-driven strategies is habitat rotation, which describes how owners of a stock (typically fundamental investors) will seek to quickly reduce their ownership position due to a corporate event. Event-driven investors who are willing to accumulate shares during this habitat rotation are often able to earn a positive risk premia
- Our HRP focus is to efficiently extract the risk premia associated with event-driven strategies
- Our event-driven HRP strategies currently include Systematic Risk Arbitrage and Systematic SPAC
We define “relative value” as strategies seeking to profit from the relative mispricing of related assets.
- The opportunity set includes the relationship of different instruments related to a single issuer as well as the trading relationship of instruments of multiple issuers
- Relative value strategies can be implemented across the opportunity set via a systematic yet practice-based approach, focusing on theoretical and historical pricing relationships
- Our HRP focus is to efficiently extract the risk premia associated with these strategies
- Our relative value HRP strategies currently consist of Systematic Convertible Arbitrage
We define “quantitative” as those strategies seeking to profit from statistical anomalies.
- The opportunity set includes investing (long or short) in stocks, futures, and other instruments
- Human behavioral biases and market structural constraints often combine to generate anomalies, which quantitative investors can spot and take advantage of
- Our HRP focus is to efficiently extract the risk premia associated with quantitative strategies
- Our quantitative HRP strategies currently consist of Equity Statistical Arbitrage