Browsing: merger arbitrage

Posts Tagged ‘ merger arbitrage ’

MERGER ARBITRAGE: ARBITRAGED AWAY?

Apr 30th, 2020 | Filed under: Hedge Fund Strategies, Newly Added, Event-Driven Hedge Funds, The A.I. Industry, Hedge Funds

By Nicolas Rabener, @FactorResearch INTRODUCTION Working in the restructuring team of a corporate finance boutique is like being a trader focused on short-selling. Most money is made when companies falter, and stocks turn bearish. A restructurer’s cyclical counterpart is the ever-optimistic merger & acquisition (M&A) banker that thrives when theRead More


Merger Arb: A Dis-economy of Scale 

Oct 27th, 2019 | Filed under: Hedge Fund Strategies, Equity Hedge Funds, Newly Added, Event-Driven Hedge Funds, The A.I. Industry, Hedge Funds

A new paper in the Journal of Economics and Business presents data on merger arb, and which factors, especially sector size and individual fund size, do or do not have an impact on the alpha available in the pursuit of this strategy. For a given time period, the total dollar amountRead More


HEDGE FUND ETFS: BETTER THAN THE ORIGINALS

May 12th, 2019 | Filed under: Hedge Fund Industry Trends, Retail Investing, Hedge Fund Strategies, Equity Hedge Funds, Newly Added, Event-Driven Hedge Funds, Alternative Investments in Context, ETFs, The A.I. Industry, Macro and Managed Futures Funds, Hedge Funds, Relative Value Hedge Funds, Allocating to A.I.

By Nicolas Rabener of FactorResearch (@FactorResearch) INTRODUCTION As Amazon has been decimating large parts of the retail industry over the last two decades, ETFs have done the equivalent to the mutual fund industry in the financial world. Today ETFs are covering nearly all areas of the markets, no matter howRead More


Challenges to Mergers: Not So Automatic Anymore?

Jan 31st, 2016 | Filed under: Newly Added, Regulatory Environment, Legislation/Court rulings, The A.I. Industry, Hedge Funds, Relative Value Hedge Funds

The Delaware Court of Chancery has become increasingly hostile of late to lawsuits that challenge corporate mergers on fiduciary grounds. This is important, because the course of recent decades certain boilerplate sorts of lawsuits have become a regular feature of the mergers-and-acquisitions landscape in the U.S.  The law has allowedRead More


M&A: Are the Delaware Courts Becoming Intrusive?

Nov 8th, 2015 | Filed under: Regulatory Environment, Legislation/Court rulings, Relative Value Hedge Funds

In 2014 it seemed possible that investment bankers could shrug off the Rural Metro decision as an anomaly; that is, as an example of how bad cases make bad law. But if a pending decision in the Supreme Court upholds the Chancery Court, they'll know they're dealing not with an anomaly but with a trend.Read More


Merger Arb: News from Delaware’s Chancery Court

Oct 13th, 2015 | Filed under: Regulatory, Hedge Funds, Relative Value Hedge Funds

The court in Delaware clearly doesn’t believe that eliciting certain undramatic tidbits of news as supplemental disclosures is enough to earn plaintiffs’ attorneys their fees. Vice Chancellor Laster in particular has, in his own words, “been giving these [cases] a hard look for a while now,” and with Aruba the court puts its foot down. Read More