Merger Arbitrage Funds: Do They Deliver What They Promise?
- Topics:
- Strategy Formulation
- Tags:
- Arbitrage,
- Capital Market,
- Capital Market Risk Advisors,
- Finance,
- Financial Services,
- Investment,
- Merger,
- Mergers & Acquisitions
- Source:
- Capital Market Risk Advisors
FREE Registration is required
Overview: Capital Market Risk Advisors (CMRA) has recently completed a detailed fundamental analysis of the merger arbitrage strategy. This was accomplished by creating the “theoretical” performance of a “pure” merger arbitrage strategy. The major conclusions were divided in two parts. Firstly, the majority of merger arbitrage managers achieved their returns by drifting away from the “pure” strategy and taking on significant equity market exposure. Secondly, that the risk-return performance of the “pure” strategy is attractive and smaller deals (presumably less efficiently valued) generated the highest returns. Read the article to know whether merger arbitrage funds deliver the promise they make or not.
(Is this item miscategorized? Does it need more tags? Let us know.)
Format: PDF | Size: 50KB | Date: Jan 2003 | Pages: 7
People who downloaded this item also downloaded
 |
Risk Arbitrage |
|
Merger Arbitrage: Evidence of Profitability |
|
Limited Arbitrage in Mergers and Acquisitions |
