Merger Arbitrage, which is the art of monetizing takeover deal spreads, is a compelling investment strategy given its propensity to generate attractive idiosyncratic returns. Recently, the complex regulatory and geopolitical environments have lengthened deal timelines and lowered the probability of completion. Consequently, these dynamics have created very wide deal spreads.
But it has also created very attractive mis-pricing, and therefore, lucrative investment opportunities for informed merger arbitrage managers. You’ll read about the basics of the strategy, and how SAM employs its research framework to capitalize on the mis-pricing for our clients.