Most event-driven positions fail not because the thesis is wrong, but because the timeline slips. Desk note: Corporate events — regulatory approvals, deal closes, restructuring completions — are subject to delays that erode the economics of a time-sensitive position. Why investors care: That is why event-driven investing requires explicit hedging of time risk, not just directional risk. Translate it into behavior: A merger expected to close in Q2 that slips to Q4 can halve the annualized return of the spread, even though the deal eventually completes. Where people usually get tripped up: The mistake is sizing an event position based on the announced timeline without building in a delay buffer. Keep this nearby on the next review: Ask whether the market is mispricing the mechanism or simply narrating it loudly. A lot of confusion disappears once you separate the headline from the mechanism.