Engulf and Devour, Inc., ("Engulf") has just announced an offer to acquire all of the shares of Generic Industries, Inc., ("Generic"). Engulf will pay 2 shares of Engulf stock for every share of Generic outstanding. Engulf is currently selling for $10 per share and Generic at $19. Hedgehog Partners, LLC, a hedge fund, has put on an arbitrage trade to profit from the merger. Hedgehog has purchased 10,000 shares of Generic and shorted 20,000 shares of Engulf. When the deal settles as planned, Generic's shares have been exchanged for Engulf shares. Engulf is then selling for $8 per share. How much net profit on its overall position has Hedgehog gained or lost? Assume that brokerage commissions and borrowing costs are negligible.