Boussard & Gavaudan Holding Ltd ("BGHL") invests in the offshore BG master fund, which is focused on event driven investing, historically investing in hard-catalyst events (corporate actions like mergers & acquisitions). Although their initial focus was on convertible bond arbitrage and trading mandatory convertibles, they have expanded their strategies to include equity derivatives and strategies which take a soft catalyst / RV approach such as capital structure arbitrage and gamma trading. By focusing on bottom up research resulting from excellent corporate access, as well as specialist areas of the market like mandatories, they try to add a convex return profile through all market conditions.
We like the fund due to its well-seasoned team and focus on adding value on a select number of high-conviction strategies, and the product plays to BG's strengths. Through tougher market conditions, the fund has protected investors well.