This quarter’s publication reviews three of the crosscurrents that swept the hedge fund investment landscape in fourth quarter and then delves more deeply into the event-driven space, examining some of the causes of recent poor performance in this area and the prospects going forward.

Volatility further increased in the third quarter, with a number of notable “events.” First, the People’s Bank of China devalued the Chinese yuan (RMB, CNY) by almost 2% in early August. Ostensibly one step on the path to a designation of special drawing rights by the International Monetary Fund, it was, in fact, a response…