distressed securities strategy and event driven strategy

[ajsa]

Hi David,

I feel distressed securities strategy is a subclass of event driven strategy?

Thanks.

 

[David Harper CFA FRM]

Hi ajsa - Yes that's where Jaegar (assigned) slots it (and me, from way back when @ http://investopedia.com/articles/03/112603.asp)
...event-driven are idiosyncratic (company-specific) plays, so it usually falls here if the issues do *not* depend too greatly on market and/or macroeconomic factors (so these also, then, should not be highly correlated with market returns; they should be low beta strategies) David

 

[ajsa]

Hi David,

it is great to see your article on investopedia.com which is one of my favorites!

Thanks.