Event-Driven Investing

Published: Feb. 25, 2021, 11:30 a.m.

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Well, the market proved Dan right yet again.

ARK Investment Management, CEO Cathie Wood, and their ETFs lost three out of their 60 billion last week -- Dan knew from ARK\\u2019s ballistics charts that the stock seemed to be topping out.

While he applauds Cathie and her company for getting into the disruptive tech game in 2014, he knows that Tesla and Bitcoin (part of ARK\\u2019s ETF bundle) remain hot stocks that are way ahead of themselves -- and too easily swayed by an Elon Musk tweet.

Everyone wants to be in the market right now, but when stocks top out like this, Dan likens it to people contentedly queuing up for a Broadway show, only to be slaughtered once they get inside. Or, in other terms, be cautious right now, investors.

Dan\\u2019s guest this week is Yoav Sharon, a portfolio manager for the Driehaus Capital Management, in charge of investment research and securities selection. He boasts 16 years of industry experience and has been a senior member of Driehaus\\u2019 investment team for eight years.

Event-driven investment strategy is a topic Dan has never covered before on the show, so Yoav breaks it down for us: it\\u2019s a niche part of the market that takes advantage of company-specific catalysts. The following events would qualify: mergers and acquisitions, arbitrage, corporate restructuring, and complex business models like healthcare.

Yoav\\u2019s fund sees and seizes these moments, explaining that event-driven investing only goes to where the opportunity lies. This strategy provides a limited correlation to broader markets, less volatility, better performance, and capital preservation during drawdown periods. Yoav also reveals the critical markers to determine whether market events are worthwhile and shares a bevy of other alternative investing tips.

Listen to their conversation and much more on this week\\u2019s episode.

Your podcast host, Dan Ferris, recently went on-record saying: \\u201cIf I had to put ALL my money in 1 stock \\u2013 This Would be It.\\u201d Get the Full Story Here:\\xa0https://orders.stansberryresearch.com/?cid=MKT519574&eid=MKT523099&encryptedSnaid=&snaid=&step=start

Also, check out a new episode of Stansberry\\u2019s podcast where politics and economics meet, American Consequences with Trish Regan.

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