The survivorship bias is minor for event driven hedge fund. Why it’s the case? Thanks.
It’s not minor - just lower.
And event driven tends to be more predictable - they are short term, typically arbitrage strategies. I guess that means they don’t blow up as often as hedged equity strategy would
Got it, thanks! Btw, the wording “minor” is how CFA curriculum describes it…
turnaround of a distressed company (distressed securities) play belong to event-driven? It should be hard to predict, no?