Merger Arbitrage Trading Strategy

• Merger arbitrage is an investment approach that focuses on predicting the successful acquisition of publicly traded companies during the period from announcement to closing
• The market’s uncertainty about a transaction’s success is reflected in the spread between the target company’s trading price and the offer price
• Mergers often close in a few months, leading to the potential for high annualized returns
• While it’s crucial to acknowledge that not every merger reaches a successful conclusion, a majority of deals typically do

Current Merger Arbitrage Opportunities