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Water Island Event-Driven Fund (AEDNX) Sortino Ratio: 5.34

Mutual Fund · Currency in USD · Last updated Jun 3, 2026

The fund invests in equity and debt and debt-like instruments (including high yield bonds commonly known as "junk bonds") of companies whose prices the fund's investment adviser believes are or will be impacted by a corporate event. Specifically, the fund employs investment strategies designed to capture price movements generated by corporate events such as mergers, acquisitions, asset sales, restructurings, refinancings, recapitalizations, reorganizations or other special situations (referred to as "event-driven opportunities"). It is non-diversified.

AEDNX's Sortino Ratio of 5.34 indicates that for each unit of downside volatility, it generates 5.34 units of excess return. The ratio is calculated using historical daily returns over the past 12 months (as of Jun 3, 2026).

Unlike other measures, Sortino only focuses on downside volatility (losses), making it particularly useful for investors more concerned about protecting against drawdowns than overall price swings.

AEDNX Sortino Ratio Rank

AEDNX Sortino Ratio Rank: 95.896
Exceptional

AEDNX ranks above 95.8% of all investments in our database based on Sortino Ratio over the past 12 months, demonstrating exceptional downside-adjusted returns. Securities are ranked from 0 (worst) to 100 (best).

What moves the rank

  • Strong returns with minimal downside volatility → Higher rank
  • Severe or frequent drawdowns → Lower rank
  • Upside volatility → No impact (Sortino doesn't penalize upside swings)

What you can do with this information

  • Suitable as a core holding given strong downside protection
  • Monitor rank changes to detect weakening downside characteristics
  • Exceptional risk-adjusted profile supports larger position sizes
  • Compare with category peers to assess whether strength is investment-specific or category-wide

AEDNX Sortino Ratio Market Positioning

The chart shows AEDNX's Sortino Ratio relative to all mutual funds on our platform, with color zones indicating percentile rankings. Higher ratios indicate better downside-adjusted returns.

  • Red zone (bottom 25%): 2.07 or lower
  • Yellow zone (middle 50%): 2.07 to 3.61
  • Green zone (top 25%): 3.61 or higher
  • Top 1%: 9.18+
  • Median: 2.99 — half of all investments score higher

How it compares to other similar mutual funds

The table compares Water Island Event-Driven Fund's Sortino Ratio with other mutual funds in the Event Driven category across multiple time periods, showing how AEDNX's risk-adjusted performance compares to similar funds.

Data shows 1-, 5-, and 10-year periods, plus each fund's all-time average, as of Jun 3, 2026.

SymbolName1Y Sortino Ratio5Y Sortino Ratio10Y Sortino RatioAll Time Sortino Ratio
HMEZXNexPoint Merger Arbitrage Fund8.25
MERIXThe Merger Fund Class I7.13
VARBXVivaldi Merger Arbitrage Fund Class I6.64
ARBNXThe Arbitrage Fund Class Institutional6.35
MERFXThe Merger Fund6.31
ARBFXThe Arbitrage Fund6.02
DAMDXDunham Monthly Distribution Fund5.67
AEDNXWater Island Event-Driven Fund5.34
EMAYXGabelli Enterprise Mergers and Acquisitions Fund3.84
WCEIXVirtus Westchester Event-Driven Fund3.36

S&P 500 Index

How to choose period

Historical Sortino Ratio

The chart shows AEDNX's rolling Sortino ratio over time compared to your chosen benchmark. Rising trends indicate improving returns relative to downside risk, while declining trends may signal deteriorating risk-adjusted performance or increased volatility during market stress. Use multiple timeframes to distinguish short-term fluctuations from long-term patterns.

Identify market cycles by observing when AEDNX consistently outperforms (line above benchmark), underperforms (below benchmark), or aligns with the benchmark.

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