Driehaus Capital Management is an independent boutique investment adviser managing long-only equity and multi-asset alternative strategies.
of institutional investment experience, founded in 1982 by renowned investor Richard H. Driehaus.
The small cap segment of emerging markets (EM) has provided a source of differentiated returns, featuring exposures that complement a core EM allocation in a manner that has been alpha generative and helped investors sidestep some of the volatility associated with geopolitical and regulatory developments within the asset class. This month’s commentary revisits the case for an allocation to EM small cap.
Imagine placing a bet on a sporting event for which one casino offers winning payout odds of 3-to-1 and a different casino offers odds of 6-to-1…for the same bet. Who wouldn’t choose the latter? Using multiple securities — as opposed to using strictly equity — to invest in merger arbitrage presents a similar opportunity to increase the odds of a successful investment. The Driehaus Event Driven Strategy’s investments in Twitter illustrate this compelling value proposition of using multiple securities to invest in merger arbitrage.