In the final video of a three-part series with K.C. Nelson, Portfolio Manager and Managing Director at Driehaus Investments, Mr. Nelson discusses how his fixed-income experience complements event-driven investing. “To my knowledge, we’re the only event-driven fund that invests across the entire capital structure,” Mr. Nelson says.
He goes on to explain that people typically think of “100% equity funds that do nothing but the risk-arbitrage strategy” – i.e., buying the acquiree, short-selling the acquirer, and waiting for the deal to close. But these trades account for roughly 15-20% of Driehaus’s event-driven fund, while the remaining portion of the fund’s exposures are taking advantage of opportunities in credit and equity securities, including arbitraging across the two asset classes. “That’s really where I think the best opportunities that I’ve seen have been,” Mr. Nelson says.
Click here for Part I or Part III of this video series. For a list of all the exclusive DailyAlts videos, click here.