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

Documents

Literature

Fact Sheet Download
Product Primer Download
GIPS Compliant Presentation Download
GIPS Composite Descriptions Download
Download All Download

Downloads

Performance Download
Portfolio Composition Download
Download All Download

Commentary & Attribution

Commentary - Monthly Download
Commentary - Quarterly Download
Annual Letter Download
Download All Download

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.