Basking in the bliss of unprecedented successes and experiencing gigantic collapses has caused murmur among the general public towards hedge funds and their managers. The curiosity is of such magnitude that names like George Soros, Julian Robertson, Ray Dalio, James Simmons, and others, are not names of some of the most successful hedge fund managers of the world, but are legends of folklore whose moves are perceived as magic unfathomable by mere mortals.

  Event-driven strategies exploit perceived mispricing of securities by anticipating events such as corporate mergers or bankruptcies and their effects.

  In fact, the truth ‘these money managers are some of the smartest minds in the business who have started the own fund, attracted by the freedom to manage money as they see fit while raking in good money for themselves and their investors in the process.’ Generally, to ‘hedge’ is to lower overall risk by taking on an....