Filings, Insiders & OwnershipExtended setexperimental liveNew

Item 5 01 Change Of Control Drift

Updated eventData needs: lowlong only

1988

Bradley, M., Desai, A., Kim, E. H. (1988). "Synergistic Gains from Corporate Acquisitions and Their Division Between the Stockholders of Target and Acquiring Firms." Journal of Financial Economics 21(1), 3-40. Andrade, G., Mitchell, M., Stafford, E. (2001). "New Evidence and Perspectives on Mergers." Journal of Economic Perspectives 15(2), 103-120.

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In plain terms

An 8-K Item 5.01 (change of control) is a rare corporate event that typically drifts higher for 1-3 months as deal terms get priced in.

How it works

8-K Item 5.01 (Change in Control of Registrant) is a discrete, rare governance event. Target firms exhibit positive post-announcement drift as the deal terms become clearer to the market. Distinct from m_and_a_arb (which targets the spread on announced deals): this catches the moment-of-filing event window.

Live results

0 times picked on its own · 2 times inside a blend (0 beat the stock) · updated 2026-06-06

This strategy is a frequent ingredient in blends that combine a few strategies on one stock. It has contributed to 2 such blended picks (0 of which beat simply holding the stock). Picking it on its own is only one of the ways it shows up.

How its picks scored vs. buy & hold

Each pick is graded on a recent year it was never tuned on, against simply owning the same stock

Where its edge concentrates

Share of picks in each company-size group that beat buy & hold

How often it trades

Active vs. patient. Bars on the left mean it waits for rare setups; bars on the right mean it trades often

Return vs. buy & hold

How much each pick beat or trailed simply owning the stock over the test year (extreme microcap moves trimmed)

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Data dependencies

Daily prices
Adjusted-close OHLCV for every US-listed ticker; primary price feed.
SEC 8k events
Item-coded 8-K events (1.01 material agreements, 4.02 non-reliance, etc.).

Expected edge

Reported return: +3 to +6% over 30-90d
Tested over: T+1 to T+90d

Bradley-Desai-Kim 1988; +3 to +6% over 30-90d on the post-filing drift.

Related families

Item 5 02 Management Change DriftFilings, Insiders & Ownership

When an 8-K announces a director or officer change (Item 5.02), the market typically rerates the firm over the next 1-6 months. Long for 30 to 180 days.

Merger ArbitrageCompany Events & Earnings

When a ticker files an 8-K signaling an M&A deal, the stock drifts directionally for 1-3 months as the market re-rates it.

Explore Item 5 01 Change Of Control Drift on alphactor.ai

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