Editing Event-driven investing (section)

{{Short description|Hedge fund investment strategy}}
'''Event-driven investing''' or '''Event-driven trading''' is a broad term encompassing [[hedge fund]] [[investment strategy|investment strategies]] that seeks to exploit pricing inefficiencies that may occur before or after an event. Examples of such events could be an [[earnings call]], [[bankruptcy]], [[merger]], [[Takeover|acquisition]], or [[corporate spin-off|spinoff]].<ref name=":0">{{cite web |url=https://www.barclayhedge.com/research/educational-articles/hedge-fund-strategy-definition/hedge-fund-strategy-event-driven.html |title=Understanding Event-Driven Investing |publisher=Barclay Hedge |access-date=May 8, 2010}}</ref> In more recent times market practitioners have expanded this definition to include additional events such as natural disasters, regulatory changes, and actions initiated by shareholder activists.<ref>{{Cite web|url=https://mergerarbitragelimited.com/event-driven-investment-strategies/|title=Event Driven Investment Strategies - Hedge Fund Strategies|date=2019-06-26|website=Merger Arbitrage Limited|language=en-GB|access-date=2019-06-27}}</ref> However, merger arbitrage remains the best-known investment strategy within this group.<ref>{{Cite web|url=https://mergerarbitragelimited.com/event-driven-investment-strategies/|title=Event Driven Investment Strategies|last=Spink|first=Mal|website=MergerArbitrageLimited.com|date=24 February 2020 }}</ref>

This strategy was successfully utilized by [[Cornwall Capital]] and profiled in "[[The Big Short]]" by [[Michael Lewis]].