Investment Lifecycle and Strategies
Hypothetical Returns
WHERE WE DIFFER
TIME ARBITRAGE
The ability to invest on a longer time horizon than most other people is one of Hayden's most important
advantages.
•
Institutional investors are increasingly seeking low-volatility returns, and have resorted to investing in short-
term "events" to achieve this.
As a result, average holding periods have decreased to less than 18 months today.
This is great opportunity for long-term investors and Hayden Capital. If we're willing to look beyond the
market's horizon of 18 months, we can receive the value of future positive developments for free.
Event-Driven Funds /
The Market
Year 1
I
Year 2
Hayden Capital
Market Fails to Give Credit to
Positive Developments
>18 Months Away
Time Arbitrage
(In years; source: NYSE)
Avg. Number of Years Held
8
9
Average Holding Period of
~1.5yrs
Year 3
Year 4
0
1950
1955
1960
1965
1970
1975
1980.
1985
1990
1995
2000
2005
2010
2015
Average Holding Period for NYSE Stocks
(In years)
HAYDEN CAPITAL 8.View entire presentation