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Merger Arbitrage: How to Profit from Event-Driven Arbitrage, 2nd Edition

Merger Arbitrage: How to Profit from Event-Driven Arbitrage, 2nd Edition

  • 作者:
  • 出版商: John Wiley & Sons
  • ISBN: 9781118736357
  • 出版时间 April 2016
  • 规格: Hardback , 528 pages
  • 适应领域: International ? 免责申明:
    Countri(es) stated herein are used as reference only

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  • 描述 
  • 大纲 
  • 作者 
  • 详细

    Mitigate risk and increase returns with an alternative hedge fund strategy

    Merger Arbitrage: How to Profit from Event-Driven Arbitrage, Second Edition is the definitive guide to the ins and outs of the burgeoning merger arbitrage hedge fund strategy, with real-world examples that illustrate how mergers work and how to take advantage of them. Author Thomas Kirchner, founder of the Pennsylvania Avenue Event-Driven Fund, discusses the factors that drove him to invest solely in merger arbitrage and other event-driven strategies, and details the methods used to incorporate merger arbitrage into traditional investment strategies.

    And while there is always a risk that a deal will fall through, the book explains how minimal such risks really are when the potential upside is factored in. Early chapters of the book focus on the basics of the merger arbitrage strategy, including an examination of mergers and the incorporation of risk into the arbitrage decision. Following chapters detail deal structures, financing, and legal aspects to provide the type of in-depth knowledge required to execute an effective investment strategy. The updated second edition stresses new, increasingly relevant information like:

    • Worldwide legal deal regimes
    • UK takeover code
    • UK takeover code global offspring
    • Regulators around the world

    The book provides clear, concise guidance on critical considerations including leverage and options, shorting stocks, and legal recourse for inadequate merger consideration, allowing readers to feel confident about trying a new investment strategy. With simple benefits including diversification of risk and return streams, this alternative hedge fund strategy has a place in even the most traditional plan. Merger Arbitrage: How to Profit from Event-Driven Arbitrage, Second Edition provides the information that gives investors an edge in the merger arbitrage arena.

  • Preface vii

    Acknowledgments xi

    PART ONE The Arbitrage Process 1

    CHAPTER 1 Introduction to Merger Arbitrage 3

    CHAPTER 2 The Mechanics of Merger Arbitrage 18

    CHAPTER 3 The Role of Merger Arbitrage in a Diversified Portfolio 50

    CHAPTER 4 Incorporating Risk into the Arbitrage Decision 103

    PART TWO Pitfalls of Merger Arbitrage 141

    CHAPTER 5 Sources of Risk and Return 143

    CHAPTER 6 Deal Structures: Mergers and Tender Offers 188

    CHAPTER 7 Financing 217

    CHAPTER 8 Legal Aspects 250

    CHAPTER 9 Management Incentives 293

    CHAPTER 10 Buyouts by Private Equity 328

    CHAPTER 11 Minority Squeeze-Outs 341

    PART THREE Investing in Merger Arbitrage 361

    CHAPTER 12 Government Involvement 363

    CHAPTER 13 Four Ways to Fight Abuse of Shareholders in Mergers 409

    CHAPTER 14 Investing in Arbitrage 435

    Notes 475

    About the Author 483

    Exercises 485

    Index 497

  • THOMAS F. KIRCHNER is a portfolio manager of the Quaker Event Arbitrage Fund, a mutual fund that uses merger arbitrage as one of its investment strategies.

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