Elliott Dominates Event-Driven Portfolios

Chidem Kurdas

Look at a big investor’s event-driven holdings and a name you’re likely to spot is Elliot Associates LP. Longevity and a reliable track record probably have something to do with it—Paul Singer, a lawyer, founded Elliot in 1977.

Consistent performance is the likely draw for large funds of funds that invest in Elliot. One long-time investor is Grosvenor, a highly regarded fund of funds manager.

 Not that Elliott’s ventures are always successful. Its bid for technology company Novell Inc. in March was rejected and Novell is reportedly close to a deal with other parties.

But Elliot has done better than a number of other managers in the strategy. The 2008 crisis was hard on event-driven funds, leaving them with frozen investments and legal tangles. A prominent example is Perry Capital, which moved certain illiquid investments to side pockets after losses in 2008 and sued Porsche for $1 billion, claiming the company deliberately caused a short squeeze.

Currently Elliot may be the event-driven manager with the most assets. It had just under $17 billion as of the second quarter according to HedgeFundAlert.

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One Response to “Elliott Dominates Event-Driven Portfolios”

  1. Funds Sell Delphi, Price Moves « HedgeFundSmarts Says:

    […] Elliott Associates, founded by Paul Singer in 1977, is one of the largest event-driven managers. […]

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