Driehaus Event Driven Fund
The Driehaus Event Driven Fund is a multi-asset fund that seeks to generate strong absolute returns with low correlation and less volatility relative to major market indexes. The Fund is led by portfolio managers Michael Caldwell, Thomas McCauley and Yoav Sharon.
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Fund Objective
The Driehaus Event Driven Fund seeks to capitalize on price inefficiencies caused by corporate events.
The fund’s investment process dynamically allocates capital across investment categories, asset classes, and sectors. Specifically, DEVDX focuses on three primary investment categories: Catalyst Driven Equities, Catalyst Driven Credit and Arbitrage Opportunities.
Catalyst Driven Equities
Catalyst Driven Credit
Focus on corporations going through significant changes, and look to unlock the value that may accrue from these events.
Event webpage
Arbitrage Opportunities
Spin-Offs
Catalyst Driven Equities are opportunities predicated on an anticipated event. The fund seeks investments with idiosyncratic drivers of return and high probabilities of success.
Catalyst Driven Equities
Capitalizing on the inefficiencies that stem from a parent company transforming a subsidiary into a separate, independent public company.
- Credit Opportunities
Catalyst Driven Equities
Arbitrage Opportunities
Catalyst Driven Credit
Catalyst Driven Credit refers to loans and bonds of companies that have taken -- or are taking -- action to improve their financial condition and are emerging into a period of financial strength. In credit, the funds seeks investments with limited downside risk that offer returns through a combination of current yield and capital appreciation.
Catalyst Driven Credit
Catalyst Driven Equities
Arbitrage Opportunities
Catalyst Driven Credit
Arbitrage Opportunities
Arbitrage Opportunities refers to securities of companies going through an announced transaction. In arbitrage, the funds seeks investments with low market beta and returns driven by short duration catalysts.
Investing across asset classes and all event driven sub-strategies allows the fund to capitalize on opportunities throughout a cycle and avoid over-reliance on any one strategy or opportunity set.
Data Releases
The announcement of a regulatory approval or company filing that would impact the company
Activism
Working with corporate management to grow and unlock shareholder value.
Downside Mitigation
DEVDX has outperformed the S&P 500 15 out of the 18 down months in the past 5 years
The Fund has produced positive returns 9 of the 18 down months
Outperformance in Down Markets
Low Correlation
Morningstar Event Driven Category Correlation*
DEVDX Correlation
Stocks
Commodities
Treasury Bills
Bonds
-0.1
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
Source: Driehaus Capital Management
This chart depicts Driehaus Event Driven Fund’s (DEVDX) outperformance (or underperformance) versus the S&P 500 Index (ND) in all instances where the S&P 500 Index (ND) had a negative monthly return since 1/1/2016. An investor cannot invest directly in an index. Net of fee performance is used. Data as of 6/30/22. Performance for the Driehaus Event Driven Fund (DEVDX) is used. The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling (800) 560-6111 or visiting our website at www.driehaus.com. Fund returns shown include the reinvestment of all dividends and capital gains. The total annual fund operating expense for DEVDX is 1.50% as disclosed in the 4/30/22 prospectus. Please see notes at end of presentation for more information on indices used. Foreside Financial Services, LLC, Distributor
Correlation to Markets
The Driehaus Event Driven Fund historically has low correlation to other asset classes
The Fund has been less correlated to stocks, bonds and treasuries than the Morningstar Event Driven Category over a 5 year period
Lower Volatility
The Driehaus Event Driven Fund has an annualized volatility of less than 50% the S&P 500 for the 1 year,
3 year and 5 year periods.
Historical Key Characteristics
-3.69
0.46
-0.91
-2.54
-4.77
-6.84
-2.03
-9.03
-6.35
1.76
-1.28
-1.58
-0.04
3.12
-8.23
1.68
-13.46
-12.35
-3.80
1.74
-2.66
1.25
-1.01
2.66
-4.65
0.27
-1.41
-0.69
-4.97
-5.17
-2.99
1.66
-8.72
-3.37
-8.25
-2.95
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-15.00
-12.00
-9.00
-6.00
-3.00
0.00
3.00
6.00
S&P 500
DEVDX
*Graph only represents the past five years of outperformance
Interested In our Fund?
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Driehaus Capital Management is an independent boutique investment adviser managing long-only equity and multi-asset alternative strategies.
Strategy Selection
in a Liquid
Alternative Matters
For the past 10 years the US Event Driven Fund Category has produced the highest annualized returns, highest sharpe ratio and lowest volatility in Morningstar’s Alternatives Diversifier Category.
See more on the event teams 60/40 approach
According to Morningstar Direct, investors
are showing a renewed interest in Liquid
Alternatives investments
2021 has seen the largest amount of net
flows in over 10 years.
How Investing in Liquid Alternatives can benefit a traditional asset allocation
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
-5.00
0.00
5.00
10.00
15.00
20.00
25.00
35.00
40.00
S&P 500
DEVDX
1 Year
5 Year
3 Year
0.00
5.00
10.00
15.00
20.00
25.00
Refinancings
When a company revises or replaces the terms of an existing loan, such as interest rates, payment schedules, etc.
Reorganizations
A significant and disruptive overhaul of a troubled business intended to restore it to profitability. It may include shutting down or selling divisions, replacing management, cutting budgets, and laying off workers.
Recapitalizations
Restructuring of a company's debt and equity mixture, often to stabilize a company's capital structure.
Merger Arbitrage
Simultaneously purchasing and selling the respective stock of two merging companies.
Convertible Arbitrage
Capitalizing on the mispricing between a convertible bond and its underlying stock.
Capital Structure Arbitrage
Capitalizing on the mispricing between a company’s debt-linked and equity-linked securities.
Investors are Seeing Renewed Interest in Liquid Alts
DEVDX
Performance*
Since the inception of the current portfolio management team in August of 2018 through the end of the second quarter of 2022, the Driehaus Event Driven Fund has outperformed a 60/40 portfolio (S&P 500 represents the stock portfolio and Bloomberg US Aggregate represents the bond portfolio) and the Morningstar Event Driven Category Average as well as producing a higher Sharpe ratio and annualized alpha. The fund has also
produced a lower downside capture ratio and lower beta than a traditional 60/40 portfolio.
40%*
7/31/22
7/31/22
7/31/22
6/30/22
6/30/22
7/31/22
46%*
41%*
*DEVDX volatility as a percentage of the S&P 500.
3.21
2.57
3.65
1.92
0.47
0.38
0.56
0.06
6.99
5.30
5.28
7.22
-11.33
-8.78
-8.08
-6.56
Annualized
Returns
Max Drawdown
Standard
Deviation
Sharpe Ratio
US Fund Options Trading
US Fund Multistrategy
US Fund Event Driven
US Fund Equity Market Neutral
How We Invest
Key Characteristics
Benefits of Liquid Alternatives
Strategy Selection
Impact of DEVDX
Morningstar’s Alternatives
Diversifier Category
How We Invest
Source: Driehaus Capital Management
This chart depicts Driehaus Event Driven Fund’s (DEVDX) outperformance (or underperformance) versus the S&P 500 Index (ND) in all instances where the S&P 500 Index (ND) had a negative monthly return since 1/1/2016. An investor cannot invest directly in an index. Net of fee performance is used. Data as of 6/30/22. Performance for the Driehaus Event Driven Fund (DEVDX) is used. The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling (800) 560-6111 or visiting our website at www.driehaus. com. Fund returns shown include the reinvestment of all dividends and capital gains. The total annual fund operating expense for DEVDX is 1.50% as disclosed in the 4/30/22 prospectus. Please see notes at end of presentation for more information on indices used. Foreside Financial Services, LLC, Distributor
+Disclosures
+Disclosures
Source: Driehaus Capital Management, Factset
Correlation Driehaus Event Driven Fund and Morningstar Event Driven Category Average Stocks: S&P 500® Index, Bonds: Bloomberg U.S. Aggregate Bond Index, Treasury Bills: Bloomberg U.S. 1-3 Month Treasury Bill Index, Commodities: S&P Goldman Sachs Commodity Index, Inflation: U.S. Consumer Price Index.
+Disclosures
(Estimated net flows in $Bil)
*Morningstar defines diversifiers as: “Diversifiers offer exposure to a broader set of risk factors—separate from equities or fixed income—that we call nontraditional or alternative betas. These include event-driven trades like merger arbitrage, relative value trades like convertible arbitrage, and equity market neutral strategies. While some of these trades have exposure to broader macro themes (mergers are more likely to be announced and go through in favorable economic environment), in general these strategies are influenced by idiosyncratic and security specific factors, which add diversifying elements to a portfolio
+Disclosure
Source: Dreihaus Capital Management, Factset
*The Standard & Poor’s (“S&P”) 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group. It is a market-weighted index (stock price times number of shares outstanding), with each stock’s weight in the index proportionate to its market value.
+Disclosure
Source: Morningstar Direct
The performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For the most recent month-end performance, please click here.
Source: Driehaus Capital Management, Factset
*Since Inception of the PM Team
The performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For the most recent month-end performance, please click here.
Volatility: Volatility uses Annualized Standard Deviation
Sharpe Ratio: is calculated by finding the portfolio’s excess return and then dividing by the portfolio’s standard deviation.
Alpha: A term used in investing to describe an investment strategy’s ability to beat the market, or its “edge.”
Beta: A measure of the volatility , or systematic risk , of a security or a portfolio in comparison to the market as a whole.
Down Capture Ratio: A statistical measure of an investment manager’s overall performance in down-markets.
The Standard & Poor’s (“S&P”) 500 Index: Consists of 500 stocks chosen for market size, liquidity, and industry group.
It is a market-weighted index (stock price times number of shares outstanding), with each stock’s weight in the index proportionate to its market value.
Bloomberg US Aggregate Index: A broad-based index that measures the investment grade, U.S. dollar- denominated, fixed-rate taxable bond market.
Standard Deviation: is a measure of the average deviations of a return series from its mean; often used as a measure of portfolio volatility.
+Additonal Terms
DEVDX
Morningstar Event Driven Category Average
60% S&P 500, 40% Bloomberg US Agg
7.49
6.68
3.43
33.82
69.90
22.34
3.35
0.26
1.01
0.56
0.49
0.48
0.42
0.62
0.24
Annualized
Returns
Downside Capture
Sharpe Ratio
Beta
Alpha
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Click here
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+Additonal Disclosure
Please consider the investment objectives, risks, fees and expenses of the Fund carefully prior to investing. The Private Placement Memorandum (PPM) contains this and other important information about the Fund. Please read the PPM carefully before investing. The information presented is intended for the sole and exclusive use of the recipient and should only be relied on by the intended recipient.
This piece is not intended to provide investment advice. Nothing herein should be construed as a solicitation or a recommendation to buy or sell securities or other investments. You should assess your own investment needs based on your individual financial circumstances and investment objectives. Driehaus does not guarantee the accuracy or completeness of this information. This data was prepared on August 24, 2022 and has not been updated since then. It may not reflect recent market activity.
Driehaus assumes no obligation to update or supplement this information to reflect subsequent changes. This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The information and opinions contained in this material are derived from proprietary and non-proprietary sources deemed by Driehaus to be reliable, are not necessarily all inclusive and are not guaranteed as to accuracy. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader.
Prospectus & Summary Prospectus
Foreside Financial Services, LLC, Distributor
Risks
Mutual Fund investing involves risk; principal loss is possible.
Volatility
The Driehaus Event Driven Fund seeks to capitalize on price inefficiencies caused by corporate events.
Fund Objective
Focus on corporations going through significant changes, and look to unlock the value that may accrue from these events.
Event webpage
Click below for more
The Driehaus Event Driven Fund is a multi-asset fund that seeks to generate strong absolute returns with low correlation and less volatility relative to major market indexes. The Fund is led by portfolio managers Michael Caldwell, Thomas McCauley and Yoav Sharon.
Driehaus Event Driven Fund
Impact of DEVDX
Strategy Selection
Benefits of Liquid Alternatives
Key Characteristics
How We Invest
Historical Key Characteristics
Click below
Downside Mitigation
Click below
Low Correlation
Click below
Lower Volatility
-3.69
0.46
-0.91
-2.54
-4.77
-6.84
-2.03
-9.03
-6.35
1.76
-1.28
-1.58
-0.04
3.12
-8.23
1.68
-13.46
-12.35
-3.80
1.74
-2.66
1.25
-1.01
2.66
-4.65
0.27
-1.41
-0.69
-4.97
-5.17
-2.99
1.66
-8.72
-3.37
-8.25
-2.95
Mar
'18
Feb
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Oct
'18
Dec
'18
May
'19
Aug
'19
Jan
'20
Feb
'20
Mar
'20
Sep
'20
Oct
'20
Jan
'21
Sep
'21
Nov
'21
Jan
'22
Feb
'22
Apr
'22
Jun
'22
-15.00
-12.00
-9.00
-6.00
-3.00
0.00
3.00
6.00
S&P 500
DEVDX
*Graph only represents the past five years of outperformance
+Disclosures
The performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For the most recent month-end performance, please click here.
Source: Driehaus Capital Management
This chart depicts Driehaus Event Driven Fund’s (DEVDX) outperformance (or underperformance) versus the S&P 500 Index (ND) in all instances where the S&P 500 Index (ND) had a negative monthly return since 1/1/2016. An investor cannot invest directly in an index. Net of fee performance is used. Data as of 6/30/22. Performance for the Driehaus Event Driven Fund (DEVDX) is used. The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling (800) 560-6111 or visiting our website at www.driehaus. com. Fund returns shown include the reinvestment of all dividends and capital gains. The total annual fund operating expense for DEVDX is 1.50% as disclosed in the 4/30/22 prospectus. Please see notes at end of presentation for more information on indices used. Foreside Financial Services, LLC, Distributor
6/30/22
Outperformance in Down Markets
DEVDX has outperformed the S&P 500 15 out of the 18 down months in the past 5 years
The Fund has produced positive returns 9 of the 18 down months
Morningstar Event Driven Category Correlation*
DEVDX Correlation
Stocks
Commodities
Treasury Bills
Bonds
-0.1
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
Source: Driehaus Capital Management
This chart depicts Driehaus Event Driven Fund’s (DEVDX) outperformance (or underperformance) versus the S&P 500 Index (ND) in all instances where the S&P 500 Index (ND) had a negative monthly return since 1/1/2016. An investor cannot invest directly in an index. Net of fee performance is used. Data as of 6/30/22. Performance for the Driehaus Event Driven Fund (DEVDX) is used. The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling (800) 560-6111 or visiting our website at www.driehaus.com. Fund returns shown include the reinvestment of all dividends and capital gains. The total annual fund operating expense for DEVDX is 1.50% as disclosed in the 4/30/22 prospectus. Please see notes at end of presentation for more information on indices used. Foreside Financial Services, LLC, Distributor
Correlation to Markets
7/31/22
The Driehaus Event Driven Fund historically has low correlation to other asset classes
The Fund has been less correlated to stocks, bonds and treasuries than the Morningstar Event Driven Category over
a 5 year period
+Disclosures
Source: Driehaus Capital Management, Factset
Correlation Driehaus Event Driven Fund and Morningstar Event Driven Category Average Stocks: S&P 500® Index, Bonds: Bloomberg U.S. Aggregate Bond Index, Treasury Bills: Bloomberg U.S. 1-3 Month Treasury Bill Index, Commodities: S&P Goldman Sachs Commodity Index, Inflation: U.S. Consumer Price Index.
7/31/22
S&P 500
DEVDX
40%*
41%*
*DEVDX volatility as a percentage of the S&P 500.
46%*
1 Year
5 Year
3 Year
0.00
5.00
10.00
15.00
20.00
25.00
+Disclosures
Source: Dreihaus Capital Management, Factset
*The Standard & Poor’s (“S&P”) 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group. It is a market-weighted index (stock price times number of shares outstanding), with each stock’s weight in the index proportionate to its market value.
The Driehaus Event Driven Fund has
an annualized volatility of less than
50% the S&P 500 for the 1 year,
3 year and 5 year periods.
Volatility