Event-driven hedge funds are making a comeback on the heels of a global surge in mergers and acquisitions, reports Reuters. Deals in Europe are up by a fifth from last year, hitting $436 billion so far in 2015, but they’re still behind the U.S. advance of 47% and Asian jump of 60%.
The Greek debt crisis, however, could be a spoiler:
“The only thing holding us back is this dance still going on for Greece,” said Reade Griffith, co-founder of Polygon, who manages one of the biggest event driven hedge funds in Europe.
Greece has indicated that it will try to reach a deal by the end of June, prompting money managers like Griffith to start placing bets. Griffith’s $1.5 billion firm has doubled its exposure to M&A deals in its $600 million European event driven fund. European deals are emerging, and people look willing to allocate more money than in the U.S., says Ben Watson, senior investment manager for alternatives at Aberdeen Asset Management.
Photo: Jaafar Alnasser via Flickr.