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

Merger Arbitrage or relative-value strategy hedge funds which aim to profit off from mispricings while unsuccessful in others. Relative value strategies include merger arbitrage, convertible bond arbitrage, fixed income arbitrage, mortgage backed arbitrage and capital structure arbitrage. Surprisingly, John Paulson's merger arbitrage funds are returning better than his event driven strategies. Considering how the merger revival that so many strategists and analysts predicted has not occurred, the event-driven community is in all the same names. Contrarily, Paulson Advantage and Advantage Plus are down 12.68 and 18.4 percent respectively. Event Driven - This scenario is triggered by corporate upheaval, whether it be a merger, sale of assets, some sort of restructuring or even bankruptcy. Thomas Kirchner manages the Pennsylvania Avenue Event-Driven Fund (PAEDX), which holds arbitrage positions in SPACs not mentioned here. Designed correctly, these strategies can yield profit on either side of the entry points. The first one pops up in our own merger arbitrage portfolio every December. That is the month Disclosure: Thomas Kirchner manages the Pennsylvania Avenue Event-Driven Fund [PAEDX], which uses merger arbitrage. Merger Arbitrage: How to Profit from Event Driven Arbitrage. The arbitrage fund, Paulson Enhanced, is up 10.5 percent while Paulson International is up almost 5 percent. 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. Written by a fund manager who invests solely in merger arbitrage, also referred to as risk arbitrage, and other event-driven strategies, Merger Arbitrage is the definitive book on how this alternative hedge fund strategy works. Merger Arbitrage: How to Profit from Event-Driven Arbitrage Publisher: W i l e y | 2009 | PDF | ISBN: 0470371978 | 355 pages | 15.5 Mb Written by a fund manager who invests solely in merger. Relative value strategies are arbitrage transactions that seek to profit from the spread between two securities rather than from the general market direction.