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Event-Driven Strategy

  • Asset Class Alternatives

Overview

The GMO Event-Driven Strategy seeks to generate absolute return by investing in opportunities that arise from significant corporate events where there is generally some uncertainty about the outcome of the event in question and where the outcome will be known relatively soon. In practice, the Strategy’s portfolio generally includes a heavy focus on merger arbitrage transactions, supplemented by other opportunities that exhibit similar risk, return, and time horizon characteristics.

GMO’s Event-Driven team approaches this opportunity set with a strong emphasis on expected value, assessing the likelihood and returns of each outcome and focusing on situations where the team’s assessment of the expected value is greater than that implied by the market. The governing philosophy behind this value-based approach is that the event-driven space, like many other investment markets more broadly, often exhibits excesses of greed and fear that can lead to compelling value opportunities for investors who combine thoughtful research with a philosophical willingness to deviate from the crowd.

Facts

Performance

Management

Francis_Doug

Doug Francis

Head of Event-Driven

Mr. Francis is engaged in managing GMO’s Event-Driven portfolio. Previously at GMO, he was a member of the Global Equity team. Prior to joining GMO in 2009, he was a managing director for Tisbury Capital Management LP. Previously, he was also a managing director (equities) for Sowood Capital Management LP and a managing principal at Pegasus Investments LLC. Mr. Francis earned his B.A. in Economics from Trinity College and his MBA from Boston University.

Klar_Sam

Sam Klar

Portfolio Manager, Event-Driven

Mr. Klar is engaged in managing GMO’s Event-Driven portfolio. Previously at GMO, he was a member of the Global Equity team. Prior to joining full-time in 2006, he held a co-op position at GMO with the Emerging Markets Equity team. Mr. Klar earned his B.S. in Finance from Northeastern University.

Documents

Literature

Fact Sheet
Product Primer
GIPS Compliant Presentation
GIPS Composite Descriptions
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Downloads

Performance
Portfolio Composition
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Commentary & Attribution

Commentary - Quarterly
Annual Letter
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Risks

Risks associated with investing in the Strategy may include Merger Arbitrage Risks, Special Situation Investment Risks, Equities Risks, Options Risks, and Forward Contracts Risks.

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