mergers-graphicSeveral large US funds such as Citadel, Moore, DE Shawand Perry Capital scaled back their European merger arbitrage
operations during the economic crisis as deal activity dried up and their ability to borrow was curbed.
Since the key drivers of merger arbitrage
returns are different from the key drivers of equity market returns, the performance of a merger arbitrage
strategy is not expected to be correlated to equity markets over time.
Gabelli Funds believes there is a compelling opportunity for investment in merger arbitrage
; merger arbitrage
returns, while non-market correlated, have historically been less volatile than the returns of the stock market as a whole.
The second sub-fund within the firm's Luxembourg based SICAV, GAMCO Merger Arbitrage
will be offered outside of the US to institutional and retail investors and will initially register retail shares in Switzerland, Germany, and Italy.
strategies contributed 15 basis points to the index performance in September, while long-biased corporate credit strategies continued to benefit from the recovery in the high yield credit markets, added another 16 points.
a hedge fund based in New York, where he focused on investing in international distressed debt, merger arbitrage
and special situations, including several investments in the TMT space.
Needham & Company, LLC has added key research, sales and sales trading professionals in Health Care Services Research; Boston Equity Sales; Corporate Access Origination & Client Strategy; Event-Driven, Special Situations & Merger Arbitrage
Sales; and Sales Trading, the company said.
Special situations, credit and merger arbitrage
funds in the liquid alternative event-driven sub-index gained 0.
Mattison noted, Gabelli Securities has a terrific record in the hedge fund business, historically in Merger Arbitrage
and is extending it to other core competencies.
The LAB Merger Arbitrage
Index remains the best performing sector with year-to-date gains of 5.
ArbJournal, LLC, the leading source for real-time merger arbitrage
research and analysis, is pleased to announce the expansion of its product offerings into Europe.
The special situations sub-index gained 2%, and merger arbitrage
was up 0.