Merger arbitrage to become crowded as style drifters return

Event-driven

Distressed hedge funds performed well last year but still have some way to go, according to hedge fund managers. Furthermore, they believe, merger arbitrage funds may also begin to perform as deals increase in number.

Distressed debt is now expensive and returns have been made but the next three to six months should still see the tail end of a strong period for the strategy, according to Tony Morrongiello, chief executive officer of 3A Alternative Asset Advisers, which manages the Altin fund