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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
ISBN: 0470371978,
Format: pdf
Publisher: Wiley
Page: 370

By Thomas Kirchner Hoboken, NJ: John Wiley & Sons 2009. Risk arbitrage hedge fund managers can employ an event-driven investment strategy or merger arbitrage investment strategy, seeking situations such as hostile takeovers, mergers and leveraged buyouts. 302: LEVERAGE AND OPTIONS Merger arbitrage is a low-volatility strategy. The SOGAsia Fund was It is commonly viewed that arbitrage strategies have to leverage up to the high single digits in order to make money off some very small spreads. With over 7,000 hedge funds, there the positions at a profit. 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. Event Driven – this strategy bases its investment on a particular event, a common example of which is investing in a “distressed” READ: bankrupt company. He currently runs two hedge funds, the SOG Fund (global multi-strategy arbitrage) and SOGAsia. Genesco's (GCO) poor second quarter results triggered a panicked reaction from Finish Line (FINL), which is “evaluating its options regarding” the merger of the two firms. Genesco's management would be well advised to insist on a floor to ensure that the certain erosion of FINL's stock price resulting from inevitable arbitrage shorting of FINL will not destroy the value received by GCO's current shareholders. It employs structure arbitrage, closed-end fund arbitrage, pair trading, merger arbitrage and event driven strategies. Predictably, in the current jittery market, . The SOGAsia fund is an Asia including Japan, multi-strategy arbitrage fund. Merger Arbitrage: How to profit from event-driven arbitrage. There are several variations of this strategy, one being merger arbitrage, in which a manager bets on the price of the company to be acquired, hoping it will be different from what the marketplace anticipates it will be.