Market volatility associated with the post dot-com era of investing has amplified the need for increased portfolio diversification.  Presented below are the most recent twelve years of annual returns of major asset classes that are commonly used when constructing a diversified asset allocation mix. Investors in top performing asset classes of a given year saw them sink in some cases to last place the next year.

Specialized or alternative investments have generated renewed interest as a possible means to curb volatility while pursuing attractive returns. One such alternative is the Event Driven asset class. When measured against traditional as well as other alternative investments, Event Driven investing has delivered relatively steady performance.

Callan Chart Showing Steady Performance of Event-Driven Asset Class

Source: Data provided by Zephyr StyleADVISOR®

Data shown represents past performance and is not indicative of future results. Indexes do not incur expenses and are not available for investment.  Index performance is not illustrative of fund performance.  Click here for Fund performance current to the most recent month end or by call us toll free at 800.220.8888.



Event-Driven investing attempts to exploit mispriced securities of companies that are experiencing corporate events such as a merger or buyout, bankruptcy, or activist situations.  Unlike market securities, the effects of market volatility on the price of event securities are all but eliminated.  Whether the market is up or down is irrelevant because this asset class is detached from directional markets.

Of the asset classes shown, none have taken similar or less risk and generated greater returns than the Event-Driven asset class.

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Source: Data provided by Zephyr StyleADVISOR®

Key Definitions

Diversification does not assure a profit or protect against a loss in a declining market.

Event-Driven investing typically entails but is not limited to transactions in merger arbitrage, capital structure arbitrage or distressed securities which involves special risks and requires special investment expertise.