Two hedge fund love affairs, one with event-driven asset selection and the other with Goldman Sachs ( GS), are converging in the person of Terry Jones. Jones is leaving Goldman's $16 billion fund of funds portfolio to launch Battersby Capital Management, a new shop that will try to make money off big corporate news events like mergers and bankruptcies. At Goldman, Jones worked out of the so-called Princeton group and managed $7.3 billion of funds of funds as head of event-driven and relative value, two stock- and bond-picking strategies that try to capture returns that aren't correlated to market trends. If recent history is any guide, Jones' fund should be a hit when it launches on Jan 1. Last year, Eric Mindich, a former Goldman Sachs' partner who ran the firm's risk arbitrage desk, lined up $3 billion for his Eton Park fund's launch. Other examples of ex-Goldman success stories include David Tepper, the former head of junk bond trading at Goldman, who launched Appaloosa Partners, and Leon Cooperman, who prior to founding Omega Advisors spent 25 years at Goldman Sachs, where he was chairman and CEO of Goldman's asset management division. Jones' story is a bit different. He worked out of the Princeton's group in a pure absolute-return setting, not as a proprietary desk trader or investment banker. And while Goldman seeded Mindich's Eton Park, it is unclear whether Jones will benefit from the same support. However, according to person familiar with the launch, the new fund has obtained the backing of a foreign bank, whose name could not be determined. Event-driven strategies are attracting new talent due to the vigorous pipeline of corporate events seen nowadays, including M&A, spinoffs and special situations that present opportunities for shareholder activism. As of last week, the S&P Event Driven sub-index was up 4.51% year-to-date. It lags behind only the non-U.S.-long/short sub-index (up 6.23%) and the global equity long/short subset (up 4.83%).