Multiple Arbitrage

Multiple Arbitrage

In the context of hedge funds, a style of management where by the fund employs more than one arbitrage strategy. Portfolio manager opportunistically allocates capital among the various strategies in order to create the best risk/reward profile for the overall fund. Common strategies include merger arbitrage, convertible arbitrage, fixed income arbitrage, long/short equities pairs trading, and volatility arbitrage. In the context of equity and private equity investment, this refers to an investment in a firm where by standard multiples (earnings/price, book/price) indicate the price is far cheaper than industry averages.

Multiple Arbitrage

In hedge funds, the use of more than one arbitrage strategy at the same time. Hedge funds conduct multiple arbitrages to extract the highest possible return at the fund's level of risk.
References in periodicals archive ?
This period is going to be a bellwether for the private equity community with the key question being can the industry deliver returns when it can no longer rely on growth in GDP and multiple arbitrage, i.
In China, you also have the growth, but you still have the benefit of multiple arbitrage.
Momentum, correlation and multiple arbitrage trading strategies are the most common in the listed derivative space.
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