In the context of hedge funds, a style ofmanagementthat involves the simultaneouspurchaseof stock in acompanybeingacquiredand thesaleof stock in itsacquirer.A strategy in which ahedge fundbuyssharesin two companies that are in the process ofmergingandsellsthe shares after the merger is complete. Merger arbitrage can be profitable because stock prices often decline in the process of a merger because of the possibility that the merger negotiations will fail. They then go to a higherpriceafter the merger is complete. Because this phenomenon is so consistent, the hedge fund using merger arbitrage effectively makes ariskless profit.
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(also known as risk arbitrage) is a substrategy in the event-driven style discussed earlier.
specialists, which aim to profit from the spread between a target group s share price after a takeover announcement and the closing price at completion of the deal, have seen $841m in net inflows since January
United States : Merger arbitrage funds eye takeover revival
and special situations funds in the event-driven subindex gained 0.5%, well behind the HFRX event-driven index return of 1.6%.
Omega has expressed its support right after other Sprint shareholders did so, including US hedge fund manager John Paulson and
company Westchester Capital, Reuters untry: USASector: TelecommunicationsTarget: Sprint Nextel CorporationBuyer: DISH Network Corporation, SoftBank CorporationVendor: Omega Advisors Inc, John Paulson, Westchester CapitalDeal size in USD: 25.5bn, 20.1bnType: Corporate acquisitionFinancing: Cash & StockStatus: Agreed, BiddingComment: The USD25.5bn price refers to DISHs offer.
HEDGE FUND REPLICATION ETFs ASSETS * TOTAL RETURN ASSETS CURRENT EXPENSE FUND NAME/TICKER (MLNS) 1-YEAR 3-YEAR PRICE RATIO IQ Hedge Multi- 113.0 2.6 NA 27 1.08 Strategy Tracker ETF/QAI Credit Suisse 45.0 NA NA 20 0.55
23.0 -3.1 NA 25 0.75 ETF/MNA Credit Suisse 23.0 NA NA 22 0.45 Long/Short Liquid Index/CSLS Data through 12/23/10 except VDE, through 12/27.
Replication offers ETF investors hedge fund exposure
Associated Capital Group operates as diversified financial services and investment management business with three core pillars of operations; a principal strategies group which invests the firms proprietary capital in new and existing businesses; an asset management business that emphasizes event driven value and
oriented alternative investment portfolios for institutions and high net worth investors; and institutional research services business, publishing research as Gabelli & company, and was founded in 1976.
and special situations funds gained 0.3% in September, outperforming its HFRX counterpart by 22 basis points.
Liquid Alts Underperformed Hedge Funds in September
GAMCO Investors said that its advisor subsidiary, Gabelli Funds has launched GAMCO
, a sub-fund within the GAMCO International SICAV.
Gabelli Funds launches merger arbitrage UCITS
Various factors will affect the level of the Funds income, such as its asset mix and use of
The GDL Fund declares third quarter distribution of USD 0.16
funds in the liquid alternative event-driven sub-index gained 0.6% in August, 11 basis points behind the HFRX event-driven index.
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