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The article reports on the performance of event-driven funds, which are funds that trade on corporate change, as of 2011. It says that event-driven funds, which profit from mergers and defaults, have suffered losses as seen in the decline of AR Event Driven Index by 8.11% in 2011. Meanwhile, some event-driven fund managers say there are bargains to gain, though it comes with risks considering the abundance of economic uncertainty.

The article profiles hedge fund manager Mike Masters. According to the author, Masters has been calling for financial reforms since 2007 and has criticized both investment banks and institutional investors for piling into commodity derivatives, which he believes have sharply raised prices and adversely affected the poor. The author adds that Masters has produced annualized returns since 2009 of more than 80 percent.

The article explores the positive attributes of the hedge fund industry in the U.S. despite scandals in 2011. One of the concerns of investors over hedge funds is the fact that the funds are still unregulated. According to economist Burton Malkiel, hedge funds offer liquidity and may play a key role in addressing market bubbles. The significance of a decline in management fees in the market is explained.

The article discusses how the earthquake and tsunami in Japan in March 2011 boost the reinsurance sector. It notes that the cat bond fund managed by the New York alternative asset firm AIFAM returned more than 10% in 2010 without using any leverage. The opportunities seen by managers in the reinsurance sector for the 2011 are given. It reveals the plan of CATCo Investment Management to take advantage of significant interest from investors to increase the size of its 87 million U.S. dollars listed insurance linked securities (ILS) vehicle.