The Arbitrage Event-Driven Fund, which is advised by Water Island Capital, has been rated 5-Stars Overall out of 94 market neutral funds by Morningstar based on risk-adjusted returns performance.
Morningstar’s Overall rating takes into account a fund’s risk, volatility and returns with the top 10 per cent of funds awarded 5-Stars.
This follows the 5-Star (out of 94 market neutral funds) three-year rating based on risk-adjusted returns.
“We are pleased for the recognition awarded to the Arbitrage Event-Driven Fund. When we launched the fund to the public nearly four years ago, we felt confident that we could effectively deploy an investment approach long used by institutional investors to manage risk and volatility in a mutual fund format,” says John Orrico, founder, CEO and chief investment officer of Water Island Capital.
The Arbitrage Event-Driven Fund, introduced on 1 October 2010, seeks to capitalise on mispricings in stocks or bonds caused by a catalyst, including activist investors, regulatory changes and/or corporate actions, such as spin-offs. To deliver returns with lower volatility than most market indices, the strategy takes long and short positions to isolate relative price differences across the capital structure, sectors, and geographies. The portfolio is also actively managed to hedge unwanted exposure to equity, credit, interest rate, or volatility risk and is diversified across market capitalisation, industry sectors and events.
Water Island Capital is a privately-owned asset management firm focused-solely on event-driven investment strategies with nearly USD4 billion under management.
