AltShares Event-Driven ETF (EVNT)

Overview

Water Island Capital, LLC is an investment advisory firm that specializes in employing a "long/short" event-driven investment strategy. This distinctive approach aims to capitalize on corporate events, such as mergers, acquisitions, divestitures, or any significant corporate restructurings, that may influence the prices of a company's equity and debt securities. By predicting the impact of these events, either prior to their public announcement or in anticipation of their occurrence, Water Island Capital seeks to generate profits for its investors. The firm places a stronger emphasis on long positions, indicating a general bullish outlook, but also leverages short positions to potentially benefit from declines in securities values. Notably, the fund operated by Water Island Capital is non-diversified, meaning it may invest more of its assets in a smaller number of positions, thereby increasing its exposure to the risks associated with those investments.

Products and Services

• Long/Short Event-Driven Investment Strategy

  This core strategy involves taking long and short positions in the equity and debt of companies involved in, or anticipated to be involved in, major corporate events. The objective is to profit from the price movements triggered by these events. By going long, Water Island Capital bets on the appreciation of securities it expects to gain from corporate actions. Conversely, by shorting, it profits from the anticipated decline in the value of securities likely to be adversely affected by such events. This dual approach allows for a flexible response to various market conditions and corporate developments.

• Non-Diversified Fund Management

  As part of its investment strategy, Water Island Capital manages a non-diversified fund. This approach allows the firm to concentrate its investments in a smaller number of assets. While this can lead to higher volatility and increased risk due to a greater exposure to the performance of fewer investments, it also means the potential for significant returns if those selected investments perform well. This management strategy is chosen with the belief that a focused portfolio can outperform a diversified one under the right conditions.