The event-driven hedge fund strategy, which includes the distressed, multi-strategy and risk arbitrage sub-sectors, was the top-performing sector over the past 12 months, returning 15.62 per cent, having benefited from opportunities directly related to corporate capital structures presented in all market cycles, according to the latest industry commentary from Credit Suisse.

Other findings in the report Event Driven for All Seasons include the view that the growing number of global M&A deals, owing to both a consolidation of industries and falling trade barriers, has resulted in a particularly rich environment for the strategy.

Further, the increased LBO volume has driven M&A activity, leading to more opportunities for hedge fund managers. It also appears that event-driven hedge funds have in some cases replaced traditional banks as lenders, allowing corporations to assume more debt, refinance their loans, avoid bankruptcy and continue to grow.