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.
Our Merger Arbitrage strategy seeks to profit from the successful completion definitive, publicly announced mergers and acquisitions, in pursuit of absolute returns with and low correlation to broader equity and credit markets. Our 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.
Our Catalyst-Driven Credit strategy pursues a non-traditional approach to fixed income investing. This unconstrained, alternative credit strategy focuses on a broad range of catalysts and events such as refinancings, deep value opportunities, and reorganizations. We may 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 risk and interest rate risk.
Our Long/Short Equity strategy employs an event-driven investment focus around a wide range of special situations such as spin-offs, restructurings, and speculative M&A. 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 catalyst.
Our Diversified Event-Driven strategy invests in opportunities where the return potential is predicated on the outcomes of specific catalysts and corporate events rather than the overall direction of broader credit and equity markets. 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 may offer different opportunities.
Water Island Capital's event-driven expertise is accessible in a number of different formats depending on your needs.
Water Island Capital was a pioneer in offering event-driven strategies in a liquid alternative format. Mutual funds advised by Water Island Capital provide liquidity, low investment minimums, and transparency through regular portfolio holdings disclosures. Please click here to learn more.
Information on hedge funds managed by Water Island Capital is available to qualified investors and financial professionals. Please contact us if you would like to learn more.
Water Island Capital advises separately managed accounts following our event-driven investment strategies. Please contact us if you would like more information about a customized solution.