Event-driven strategies: merger arbitrage, distressed securities — Flashcards

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Event-driven strategies: merger arbitrage, distressed securities — Flashcards

9 flashcards

Read Study Notes Questions

If the deal is expected to go through in a merger arbitage...

What are event driven HF strategies?

HF strategies with high sortino ratios:

What is merger arbitrage?

Describe a carry trade's return distribution

What is a managed futures HF strategy?

HF strategies with smallest max drawdowns:

What are multi-manager HF strategies?

What are specialist HF strategies?

Event-driven strategies: merger arbitrage, distressed securities CFA Flashcards - Medical Study Cards

Master Event-driven strategies: merger arbitrage, distressed securities with Oncourse flashcards. These spaced repetition flashcards are designed for medical students preparing for NEET PG, USMLE Step 1, USMLE Step 2, MBBS exams, and other medical licensing examinations.

Event-driven strategies: merger arbitrage, distressed securities Flashcard Deck - 9 Cards

Flashcard 1: If the deal is expected to go through in a merger arbitage...

Answer: long target company and short acquisition company

Flashcard 2: What are event driven HF strategies?

Answer: - corporate actions such as governance activities, mergers, acquisitions, bankruptcies - event risk is primary risk (possibility that outcome won't be as expected)

Flashcard 3: HF strategies with high sortino ratios:

Answer: - equity market neutral - systematic futures - long/short equity - event driven

Flashcard 4: What is merger arbitrage?

Answer: - take advantage of uncertainty between the announcement and completion of an acquistion - has significant left-tail risk - tends to be more liquid - applies 300-500% of leverage - sharpe ratios are high, produce steady returns

Flashcard 5: Describe a carry trade's return distribution

Answer: negatively skewed, fat tails

Flashcard 6: What is a managed futures HF strategy?

Answer: - take long/short positions in futures, forwards, options on futures, swaps & currencies/commodities - enter derivative contracts, not buying asset - fund uses 1/8 of its capital as collateral on futures contracts, the rest is invested in a highly liquid security that can also servce as collateral for the futures clearing house - highly liquid (futures trade globally and continously) - subject to "crowding": many pursue same trades - size of positions based on correlation and volatility - Little correlation with traditional equity & fixed-income assets - exit methodologies based on price targets, momentum reversal, time, trailing stop-loss

Flashcard 7: HF strategies with smallest max drawdowns:

Answer: - global macro - systematic futures - merger arbitrage - equity market neutral

Flashcard 8: What are multi-manager HF strategies?

Answer: - use other HF strategies as building blocks, combining different strategies together and rebalancing exposures over time - subtypes: multi-strategy funds and FofFs

Flashcard 9: What are specialist HF strategies?

Answer: - risks of these strategies arise due to exposure to specific sectors or unsual securities - subtypes: volatility strategies an reinsurance strategies

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Event-driven strategies: merger arbitrage, distressed securities Flashcards for CFA

Study 9 flashcards on Event-driven strategies: merger arbitrage, distressed securities for CFA Alternative Investments (Level II). These active recall cards cover the key concepts, clinical associations, and high-yield facts from this chapter of Hedge Fund Strategies. Each card is designed to test your understanding rather than just recognition, building stronger and more durable memories for exam day.

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Are Event-driven strategies: merger arbitrage, distressed securities flashcards free?

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There are 9 flashcards for Event-driven strategies: merger arbitrage, distressed securities, covering the key concepts, clinical correlations, and high-yield facts from this chapter of Hedge Fund Strategies.

How should I use these flashcards for CFA?

Read through each prompt and try to answer before revealing the back of the card. This active recall approach builds stronger memories than passive reading. Combine flashcards with the study notes and MCQ practice for the best results.

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Yes. This page covers one chapter of Hedge Fund Strategies. Visit the topic page to see all chapters and their flashcards under Alternative Investments (Level II).

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