Westchester Capital Funds(1)

Merger Arbitrage Analysis

The Merger Fund

US> Multi-Cap > Value

Mar 11, 2011

Once a merger or other corporate reorganization is announced, arbitrageurs swing into action to assess the likelihood of success of the transaction and the potential profit from investing in it. Portfolio managers Roy Behren and Michael Shannon explain how The Merger Fund aims to capture the trading discount on various corporate reorganizations during the time period between a deal’s announcement and its consummation. The management team employs various hedging techniques to construct a non-correlated, absolute return-targeted portfolio.