When is merger arbitrage an attractive investment strategy? What are the downside risks of this strategy?

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An Introduction to Investment Banks, Hedge Funds, and Private Equity

ISBN: 978-9380931074

1st edition

Authors: David P. Stowell

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Question Posted: Sep 25, 2013 05:26 AM

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Merger arbitrage is considered a market-neutral strategy. Under what conditions would this no longer be the case?
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When is merger arbitrage an attractive investment strategy? What are the downside risks of this strategy?

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A hedge fund plan in which the stocks of two different integrated companies are at the sam...View the full answer

An Introduction to Investment Banks, Hedge Funds, and Private Equity

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