FYI: If you aren’t familiar with the Merger Fund, you should be. Last year, as the S&P 500 blew up, the $3 billion Merger Fund returned 7.7%. It achieved this via its merger arbitrage strategy—buying shares of the target company, which tend to rise, and selling or shorting the acquirer, expecting to make a profit when the acquisition is completed. The strategy highlights the special talents of the fund’s comanagers, Roy Behren and Michael Shannon, who run Westchester Capital, which oversees the fund and other accounts. Behren is a lawyer, Shannon a former investment banker. Their team has honed their ability to pick the winners by looking at more than 4,500 corporate reorganizations.
Regards,
Ted
https://www.barrons.com/articles/merger-arbitrage-fund-managers-share-what-theyre-seeing-51566000608?mod=djem_b_Weekly Feed for Barrons Magazine
