As 2020 comes to a close, we expect some key investment drivers to persist into next year. While our views speak to many different challenges confronting investors, including the poor bond yields on offer, the fate of US-China relations, and where to find growth, they are rooted in the belief that 2021 will be a year of healing for the global economy.
Developed markets equities rose steadily in second quarter despite negative geopolitical developments and increased tensions on the trade front. In this quarter’s update, we look at the environment and opportunity set for event-driven strategies, highlighting conditions that have fostered a constructive outlook for merger arbitrage in particular. We also explore hedge fund managers’ increasing use of activist campaigns as a tool to effect corporate change and improve shareholder returns, both in the United States and abroad.