AEDNX vs. VARBX

Last updated Jun 24, 2026

AEDNX (Water Island Event-Driven Fund) and VARBX (Vivaldi Merger Arbitrage Fund Class I) are both Event Driven funds. Over the past 10 years, AEDNX returned 4.40%/yr vs 3.78%/yr for VARBX. At a 0.37 correlation, their price movements are largely independent. AEDNX charges 1.44%/yr vs 1.81%/yr for VARBX.

Performance

AEDNX vs. VARBX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Water Island Event-Driven Fund (AEDNX) and Vivaldi Merger Arbitrage Fund Class I (VARBX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AEDNX achieves a 3.13% return, which is significantly higher than VARBX's 1.90% return. Over the past 10 years, AEDNX has outperformed VARBX with an annualized return of 4.40%, while VARBX has yielded a comparatively lower 3.78% annualized return.

AEDNX

• 1D: 0.23%
• 1M: 1.46%
• YTD: 3.13%
• 6M: 3.21%
• 1Y: 8.16%
• 3Y*: 7.22%
• 5Y*: 3.34%
• 10Y*: 4.40%

VARBX

• 1D: 0.09%
• 1M: 0.37%
• YTD: 1.90%
• 6M: 1.99%
• 1Y: 4.21%
• 3Y*: 5.41%
• 5Y*: 4.12%
• 10Y*: 3.78%

*Multi-year figures are annualized to reflect compound growth (CAGR)

AEDNX vs. VARBX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AEDNX Water Island Event-Driven Fund	3.13%	8.67%	2.26%	5.90%	-0.63%	1.18%	13.42%	4.76%	-0.15%	3.89%
VARBX Vivaldi Merger Arbitrage Fund Class I	1.90%	6.06%	5.52%	3.30%	2.38%	5.42%	4.00%	4.28%	4.11%	2.39%

Correlation

The correlation between AEDNX and VARBX is 0.27, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.27
Correlation (3Y) Calculated over the trailing 3-year period	0.23
Correlation (5Y) Calculated over the trailing 5-year period	0.32
Correlation (10Y) Calculated over the trailing 10-year period	0.36
Correlation (All Time) Calculated using the full available price history since Oct 1, 2015	0.37

The correlation between AEDNX and VARBX shifts across timeframes, from 0.23 (3 years) to 0.37 (all time), reflecting how their relationship changes across market environments.

Return for Risk

AEDNX vs. VARBX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AEDNX

AEDNX Risk / Return Rank: 96
AEDNX Sharpe Ratio Rank: 95
AEDNX Sortino Ratio Rank: 97
AEDNX Omega Ratio Rank: 95
AEDNX Calmar Ratio Rank: 96
AEDNX Martin Ratio Rank: 95

VARBX

VARBX Risk / Return Rank: 98
VARBX Sharpe Ratio Rank: 98
VARBX Sortino Ratio Rank: 98
VARBX Omega Ratio Rank: 98
VARBX Calmar Ratio Rank: 99
VARBX Martin Ratio Rank: 99

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AEDNX vs. VARBX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Water Island Event-Driven Fund (AEDNX) and Vivaldi Merger Arbitrage Fund Class I (VARBX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	AEDNX	VARBX	Difference
Sharpe ratio: Return per unit of total volatility	3.09	3.67	-0.58
Sortino ratio: Return per unit of downside risk	5.48	5.76	-0.28
Omega ratio: Gain probability vs. loss probability	1.75	2.25	-0.50
Calmar ratio: Return relative to maximum drawdown	6.03	10.79	-4.76
Martin ratio: Return relative to average drawdown	20.77	55.25	-34.49

AEDNX vs. VARBX - Sharpe Ratio Comparison

The current AEDNX Sharpe Ratio is 3.09, which is comparable to the VARBX Sharpe Ratio of 3.67. The chart below compares the historical Sharpe Ratios of AEDNX and VARBX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

AEDNX vs. VARBX - Drawdown Comparison

The maximum AEDNX drawdown since its inception was -13.03%, which is greater than VARBX's maximum drawdown of -5.12%. Use the drawdown chart below to compare losses from any high point for AEDNX and VARBX.

Drawdown Indicators

	AEDNX	VARBX	Difference
Max Drawdown Largest peak-to-trough decline	-13.03%	-5.12%	-7.91%
Max Drawdown (1Y) Largest decline over 1 year	-1.37%	-0.37%	-1.00%
Max Drawdown (3Y) Largest decline over 3 years	-2.79%	-0.64%	-2.15%
Max Drawdown (5Y) Largest decline over 5 years	-8.06%	-1.79%	-6.27%
Max Drawdown (10Y) Largest decline over 10 years	-12.24%	-5.12%	-7.12%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-2.70%	-0.56%	-2.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.40%	0.13%	+0.27%

Volatility

AEDNX vs. VARBX - Volatility Comparison

Water Island Event-Driven Fund (AEDNX) has a higher volatility of 1.20% compared to Vivaldi Merger Arbitrage Fund Class I (VARBX) at 0.26%. This indicates that AEDNX's price experiences larger fluctuations and is considered to be riskier than VARBX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AEDNX	VARBX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.20%	0.26%	+0.94%
Volatility (6M) Calculated over the trailing 6-month period	2.35%	0.68%	+1.67%
Volatility (1Y) Calculated over the trailing 1-year period	2.68%	1.08%	+1.60%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.08%	1.19%	+2.89%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.17%	2.54%	+2.63%

AEDNX vs. VARBX - Expense Ratio Comparison

AEDNX has a 1.44% expense ratio, which is lower than VARBX's 1.81% expense ratio.

Dividends

AEDNX vs. VARBX - Dividend Comparison

AEDNX's dividend yield for the trailing twelve months is around 0.92%, less than VARBX's 5.93% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AEDNX Water Island Event-Driven Fund	0.92%	0.95%	0.20%	0.72%	0.00%	0.00%	0.24%	0.46%	1.78%	0.62%	0.00%	2.79%
VARBX Vivaldi Merger Arbitrage Fund Class I	5.93%	6.04%	6.29%	4.07%	0.75%	8.42%	0.81%	5.54%	2.15%	1.70%	0.06%	0.04%

Frequently Asked Questions

Can I hold both AEDNX and VARBX in my portfolio?

AEDNX and VARBX have a correlation of 0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AEDNX or VARBX?

AEDNX has higher volatility (1.20%) compared to VARBX (0.26%). In terms of maximum drawdown, AEDNX dropped -13.03% vs VARBX's -5.12%.

Which has better risk-adjusted returns?

VARBX currently has the higher Sharpe Ratio (3.67 vs 3.09), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.