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The opportunity set remains excellent

Download full Outlook 2026 brochure
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Arbitrage strategies are designed to profit even in bearish markets

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2025 challenged conventional wisdom – market optimism can quickly reverse if policy shifts

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2026 offers strong opportunities in Korea and from volatility-driven market dislocations

Event-Driven Strategies: Outlook 2026

December 2025 | Albert Saporta

How do you make money in a bear market for financial assets?

It might not be the question investors are asking, but it is the one they should be.

Our arbitrage strategies are not market dependent. In fact, they tend to be skewed towards bearish environments. Moreover, the strategy has an active portfolio and macro overlay, which is designed to make money even in an adverse market environment.

2025 challenged conventional wisdom

President Trump showed that it is possible to fight against the Federal Reserve (Fed). Hence the “don’t fight the Fed” adage does not work anymore. If markets perceive the Fed as overly accommodative in the second part of 2026, we think today’s optimism could quickly reverse, and backfire badly.

Opportunities in 2026

Much like 2025, the opportunity set for our strategy remains excellent. Korea will remain a significant focus for our corporate structure arbitrage strategies. Meanwhile, increased volatility will continue to create dislocations, for which we believe we are particularly well-equipped to take advantage off.


Albert Saporta is Group CEO of GAM Investments and Co-Head of GAM Alternatives.

Albert Saporta

Group Chief Executive Officer and Global Head of Investments & Products, Co-Head/Co-CIO GAM Alternatives (GAMAlts)
My Insights

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Outlook 2026

DOWNLOAD THE FULL GAM OUTLOOK 2026 BROCHURE


Important disclosures and information
The information contained herein is given for information purposes only and does not qualify as investment advice. Opinions and assessments contained herein may change and reflect the point of view of GAM in the current economic environment. No liability shall be accepted for the accuracy and completeness of the information contained herein. Past performance is no indicator of current or future trends. The mentioned financial instruments are provided for illustrative purposes only and shall not be considered as a direct offering, investment recommendation or investment advice or an invitation to invest in any GAM product or strategy. Reference to a security is not a recommendation to buy or sell that security. The securities listed were selected from the universe of securities covered by the portfolio managers to assist the reader in better understanding the themes presented. The securities included are not necessarily held by any portfolio nor represent any recommendations by the portfolio managers nor a guarantee that objectives will be realised.

This material contains forward-looking statements relating to the objectives, opportunities, and the future performance of the U.S. market generally. Forward-looking statements may be identified by the use of such words as; “believe,” “expect,” “anticipate,” “should,” “planned,” “estimated,” “potential” and other similar terms. Examples of forward-looking statements include, but are not limited to, estimates with respect to financial condition, results of operations, and success or lack of success of any particular investment strategy. All are subject to various factors, including, but not limited to general and local economic conditions, changing levels of competition within certain industries and markets, changes in interest rates, changes in legislation or regulation, and other economic, competitive, governmental, regulatory and technological factors affecting a portfolio’s operations that could cause actual results to differ materially from projected results. Such statements are forward-looking in nature and involve a number of known and unknown risks, uncertainties and other factors, and accordingly, actual results may differ materially from those reflected or contemplated in such forward-looking statements. Prospective investors are cautioned not to place undue reliance on any forward-looking statements or examples. None of GAM or any of its affiliates or principals nor any other individual or entity assumes any obligation to update any forward-looking statements as a result of new information, subsequent events or any other circumstances. All statements made herein speak only as of the date that they were made.

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