Event driven investing is an investment strategy that aims to capitalize on price movements caused by anticipated corporate events. It involves thorough analysis of events such as mergers, acquisitions, spin-offs, bankruptcies, restructurings and other major corporate changes to identify mispriced securities. For investors looking to learn more about event driven investing, there are some key pdf resources that provide valuable insights into the concepts, strategies and implementation. This article will introduce some of the most popular event driven investing pdfs and provide an overview of their key contents.
Event Driven Investing by Jonathan A. Shayne
This is one of the most comprehensive books on event driven investing strategies. It covers the full spectrum of event driven opportunities including mergers, acquisitions, spin-offs, share repurchases, reorganizations, restructurings and more. The book provides detailed analysis of each event driven strategy with discussions on opportunity identification, catalysts, risks, and portfolio implementation. Key topics covered include valuation methodologies, catalyst assessment, risk management, portfolio optimization and position sizing. The book also includes numerous real-world examples to illustrate the practical application of event driven strategies.
Merger Arbitrage: A Fundamental Approach to Event-Driven Investing by Lionel Melka
This book focuses specifically on merger arbitrage, which involves investing in companies engaged in announced merger deals. It covers merger deal mechanics, deal timeline, potential catalysts and risks. A major part of the book is dedicated to valuation methodologies including DCF analysis, precedent transactions analysis and LBO modeling. The book also discusses important risk management topics like hedging using options, assessing deal risks, position sizing and portfolio optimization. Overall, it provides a solid grounding in the concepts, strategies and implementation of merger arbitrage.
Distressed Debt Analysis: Strategies for Speculative Investors by Stephen G. Moyer
As the name suggests, this book focuses on distressed and bankrupt companies, an important subset within event driven investing. It covers topics like analyzing distressed capital structures, estimating recovery values, assessing bankruptcy risks and catalysts, and managing portfolio risk. Valuation methodologies discussed include discounted cash flow analysis, asset valuation, and relative value analysis. The book also includes detailed case studies on analyzing real-world distressed companies. Overall, it equips investors with the skills to identify and profit from distressed and bankrupt special situations.
The pdf books introduced above provide thorough grounding in the key concepts, strategies and implementation of event driven investing. By studying these resources, investors can gain valuable insights into successfully navigating the risks and capturing the opportunities presented by events like mergers, spin-offs, restructurings and bankruptcies. Event driven investing requires specialized skills, but can generate attractive risk-adjusted returns uncorrelated to the broader market.