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Merger Arbitrage: How to Profit from Event-Driven Arbitrage by Thomas Kirchner

Merger Arbitrage: How to Profit from Event-Driven Arbitrage Thomas Kirchner ebook
Page: 370
Publisher: Wiley
ISBN: 0470371978,
Format: pdf

The first one pops up in our own merger arbitrage portfolio every December. Event Driven - This scenario is triggered by corporate upheaval, whether it be a merger, sale of assets, some sort of restructuring or even bankruptcy. That is the month Disclosure: Thomas Kirchner manages the Pennsylvania Avenue Event-Driven Fund [PAEDX], which uses merger arbitrage. Surprisingly, John Paulson's merger arbitrage funds are returning better than his event driven strategies. With something like merger arbitrage (or anything else that's event-driven), you can still apply the same framework but the catalyst becomes a much more central part of your recommendation. Case studies are what you really do on the job – you generate investment ideas, present them to the PM, and aim to profit from your ideas while mitigating risk. Merger Arbitrage or relative-value strategy hedge funds which aim to profit off from mispricings while unsuccessful in others. Contrarily, Paulson Advantage and Advantage Plus are down 12.68 and 18.4 percent respectively. Merger Arbitrage - Many private investors have noticed that the stock of two companies involved in a potential merger or acquisition often react differently to the news of the impending action and try to take advantage of the shareholders' reaction. Designed correctly, these strategies can yield profit on either side of the entry points. Relative value strategies are arbitrage transactions that seek to profit from the spread between two securities rather than from the general market direction. Relative value strategies include merger arbitrage, convertible bond arbitrage, fixed income arbitrage, mortgage backed arbitrage and capital structure arbitrage. Often, you're tasked with analyzing an investment opportunity with . A detailed seem at an critical hedge fund strategy. The arbitrage fund, Paulson Enhanced, is up 10.5 percent while Paulson International is up almost 5 percent.