Merger Arbitrage

Mitigate risk and increase returns with an alternative hedgefund strategy Merger Arbitrage: How to Profit from Event-Driven Arbitrage,Second Edition is the definitive guide to the ins and outs ofthe burgeoning merger arbitrage hedge fund strategy, withreal-world examples that illustrate how mergers work and how totake advantage of them. Author Thomas Kirchner, founder of thePennsylvania Avenue Event-Driven Fund, discusses the factors thatdrove him to invest solely in merger arbitrage and otherevent-driven strategies, and details the methods used toincorporate merger arbitrage into traditional investmentstrategies. And while there is always a risk that a deal will fall through,the book explains how minimal such risks really are when thepotential upside is factored in. Early chapters of the book focuson the basics of the merger arbitrage strategy, including anexamination of mergers and the incorporation of risk into thearbitrage decision. Following chapters detail deal structures,financing, and legal aspects to provide the type of in-depthknowledge required to execute an effective investment strategy. Theupdated second edition stresses new, increasingly relevantinformation like: * Worldwide legal deal regimes * UK takeover code * UK takeover code global offspring * Regulators around the world The book provides clear, concise guidance on criticalconsiderations including leverage and options, shorting stocks, andlegal recourse for inadequate merger consideration, allowingreaders to feel confident about trying a new investment strategy.With simple benefits including diversification of risk and returnstreams, this alternative hedge fund strategy has a place in eventhe most traditional plan. Merger Arbitrage: How to Profit fromEvent-Driven Arbitrage, Second Edition provides the informationthat gives investors an edge in the merger arbitrage arena.