"The environment on paper is as good as its been," says Roddy Campbell, portfolio manager for the event-driven Cross funds acquired by Rab Capital last year.
"That doesn't always mean it's going to be as good as last year. Very often, it's good to get into markets when they don't look quite right."
Campbell says most event-driven managers had a good year in 2005, although his fund had a better 2004, and the scene is set for "a good year."
Rab's Cross fund invests in a diversified portfolio of