(Wiley Finance) 2nd Edition
by Thomas Kirchner (Author)
Mitigate risk and increase returns with an alternative hedge fund strategy
Merger Arbitrage: How to Profit from Event-Driven Arbitrage, Second Edition
is the definitive guide to the ins and outs of the burgeoning merger
arbitrage hedge fund strategy, with real-world examples that illustrate
how mergers work and how to take advantage of them. Author Thomas
Kirchner, founder of the Pennsylvania Avenue Event-Driven Fund,
discusses the factors that drove him to invest solely in merger
arbitrage and other event-driven strategies, and details the methods
used to incorporate merger arbitrage into traditional investment
strategies.
And while there is always a risk that a deal will
fall through, the book explains how minimal such risks really are when
the potential upside is factored in. Early chapters of the book focus on
the basics of the merger arbitrage strategy, including an examination
of mergers and the incorporation of risk into the arbitrage decision.
Following chapters detail deal structures, financing, and legal aspects
to provide the type of in-depth knowledge required to execute an
effective investment strategy. The updated second edition stresses new,
increasingly relevant information like:
- Worldwide legal deal regimes
- UK takeover code
- UK takeover code global offspring
- Regulators around the world
The
book provides clear, concise guidance on critical considerations
including leverage and options, shorting stocks, and legal recourse for
inadequate merger consideration, allowing readers to feel confident
about trying a new investment strategy. With simple benefits including
diversification of risk and return streams, this alternative hedge fund
strategy has a place in even the most traditional plan. Merger Arbitrage: How to Profit from Event-Driven Arbitrage, Second Edition provides the information that gives investors an edge in the merger arbitrage arena.
