The fund invests in companies involved in corporate events such as mergers or acquisitions on a global basis. Focus is on larger companies where the company’s bonds and equities are both relatively liquid. This “event driven” strategy includes the three main sub-strategies of merger arbitrage, stressed credit and special situations, but the focus on liquidity means the book is biased towards merger arbitrage and special situations. The weightings among the three strategies is opportunistic, varying depending on where they perceive the best risk-reward.
We like this fund for its low volatility profile, in particular when compared to its peer group. The focus on events provides a shorter time horizon over which the highly experienced team know whether their ideas are working or not and is a differentiated rationale for investment by comparison to traditional equity strategies.