Event driven strategies, including merger arbitrage and distressed securities, have performed robustly during the three years to August. Over the past year, the funds in the sector tracked by S&P Micropal returned 17.6% in dollar terms. In the three-year period the sector returned 44.21%, giving an annualised rate of return of 14.2% and annualised volatility of 13.18%.
The relatively strong performance of all the funds, rather than a few dragging up the average of the rest, is related to the
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