Event driven investing opportunities expanded after gold ETF

Event driven investing opportunities expanded after gold ETF inflows surged 8% week-over-week on recession hedging, pushing miners like Barrick Gold up 4.5%, indicating safe-haven capital shifts. Another company facing a selloff trend from its activist hedge fund investors, GoDaddy (NYSE: GDDY ), has soared over the last year as activist fund Starboard Value takes profits. Whether this generous year of success is due to Starboard Value’s management contributions or GoDaddy’s organic growth is hard to say, but the company’s reported 748.84% increase in net income for Q1 2024 has kept the momentum going. The last category is event-driven bear markets, which are triggered by a one-off shock that either doesn’t lead to a recession or temporarily knocks an economic cycle off course. Common triggers are wars, an oil price shock, a crisis in emerging markets, or technical market dislocations. An example of an event-driven bear market is the downturn during the Covid pandemic. The economy was reasonably balanced when the pandemic hit, with both economic growth and inflation at low, stable levels. The recovery for markets hit by event-driven downturns tends to be short-lived, and the recovery is usually rapid. Event driven investing is seeing merger arbitrage spreads tighten in biotech. Pfizer’s acquisition of Seagen cut the spread from 7% to 3.5%, indicating market confidence in regulatory clearance by Q3