How To Profit From Merger Arbitrage 2015
Post on: 16 Март, 2015 No Comment
3A%2F%2Fwww.investopedia.com%2F?w=250 /% But be warned – benefiting from mergers and acquisitions is easier said than done The most common tactic to profit from M&A activity is through merger arbitrage, which involves taking a long position in shares of the target company and a simultaneous
3A%2F%2Fbusiness.financialpost.com%2F?w=250 /% When markets opened following China National Offshore Oil Corp.’s US$27.50 takeover bid for Nexen Inc. in late July, shares in the targeted Canadian oil and gas company soared more than 50% to US$26 by day’s end. Since then you might have expected
3A%2F%2Fseekingalpha.com%2F?w=250 /% For investors, the question is— how can one use this knowledge to make a profit? What makes for merger arbitrage is up to the manager. IndexIQ and ProShares have very different opinions of how merger arbitrage should work. Index IQ’s Merger Arbitrage ETF
3A%2F%2Fwww.bloombergview.com%2F?w=250 /% I quoted definition 1 in the text, but definition 2 is a buying of a large number of shares in a corporation in anticipation of, and with the expectation of making a profit from, a merger or takeover. That normally goes by the name merger arbitrage, or
3A%2F%2Fwww.forbes.com%2F?w=250 /% you will not earn any profit. The danger with this strategy is that the merger may not be completed. As a result, the scenario offers only a small reward, but big downside risk. An alternate way to pursue this strategy is to invest in an arbitrage-oriented
3A%2F%2Ffinance.yahoo.com%2F?w=250 /% For investors, the question is— how can one use this knowledge to make a profit? Fund managers think merger arbitrage ETFs are the way to go. This week, ProShares listed a new ETF seeking to make money on mergers and acquisitions. The fund trades as the
3A%2F%2Fwww.reuters.com%2F?w=250 /% AbbVie announced the Pharmacyclics deal late on Wednesday, saying it would hurt company earnings this year and next, then boost profits from 2017 and portfolio manager for Kellner Merger Fund, an arbitrage fund that took a stake in Pharmacyclics
3A%2F%2Fwww.advisor.ca%2F?w=250 /% One strategy that can be tweaked to suit both types of client is merger arbitrage (most call it merger arb). The manager tries to profit from equity price movements triggered by M&A. Ari Shiff, president of Inflection Management in Vancouver, notes this
3A%2F%2Fetfdb.com%2F?w=250 /% At its core, merger arbitrage–sometimes called risk arbitrage–is when investors seek to profit from the spread that occurs when an acquisition is announced and the final purchase price is set. Typically, when a buy-out deal is announced, there is some
3A%2F%2Fwww.tradingmarkets.com%2F?w=250 /% A profit or loss on a pair trade depends on whether the Evan is responsible for fundamental analysis on special situations, merger-arbitrage and pair trades. Evan also heads business development at Catalyst Corner. Catalyst Corner has developed The