Survivorship bias - event driven

[FrankCFA]

The survivorship bias is minor for event driven hedge fund. Why it’s the case? Thanks.

 

[JSobes]

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

 

[FrankCFA]

Got it, thanks! Btw, the wording “minor” is how CFA curriculum describes it…

 

[FrankCFA]

turnaround of a distressed company (distressed securities) play belong to event-driven? It should be hard to predict, no?