Our Strategies

Focusing on events rather than markets, Water Island Capital takes an opportunistic and flexible approach to event-driven opportunities around the globe.

Event-driven investing is a highly specialized strategy designed to profit from the behavior of equity and debt instruments trading within the timelines of specific corporate events, such as mergers, acquisitions, restructurings, refinancings, recapitalizations, and distressed situations. In seeking to capture low-correlated absolute returns, Water Island Capital does not invest based on market fundamentals, but rather on event fundamentals.

When partnering with Water Island Capital, investors have access to global event-driven investing, including single-strategy and multi-strategy approaches in both fixed income and equities.


Seeking to profit from the successful completion of corporate reorganizations, Merger Arbitrage pursues absolute returns with low correlation. Water Island Capital’s approach may utilize both the equity and credit securities of firms involved in announced transactions, along with hedging strategies designed to minimize market exposure and volatility.


Equity Special Situations employs an event-driven investment focus around a wide range of opportunities such as spin-offs, restructurings, syndicates, and pre-arbitrage situations. We look for equity securities that we believe are significantly mispriced and offer an attractive risk/reward opportunity. At the same time, we implement hedging techniques to minimize volatility and to isolate the alpha opportunity associated with the corporate event.


Our Credit Opportunities strategy pursues a non-traditional, catalyst-driven approach to fixed income investing. This unconstrained, alternative credit strategy focuses on a broad range of catalysts and events such as mergers, refinancings, deep value credit, and regulatory changes. We hold both long and short investments, and may employ convertible arbitrage, merger arbitrage, or capital structure arbitrage techniques in order to exploit security mispricings or inefficiencies, while seeking to limit credit and interest rate risk.


Our Event-Driven strategy invests in opportunities where the return potential is more correlated to the outcomes of specific catalysts and events rather than to overall market direction. We implement our strategy via an optimized, blended approach to our three core investment capabilities. We adopt a flexible and cycle agnostic approach because different markets offer different opportunities.

Water Island Capital does not invest based on market fundamentals, but rather on event fundamentals