risk arbitrage

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risk arbitrage

n.
The simultaneous purchase and sale of assets that are potentially but not necessarily equivalent in order to exploit a discrepancy in price.

risk arbitrageur n.
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.risk arbitrage - arbitrage involving risk; as in the simultaneous purchase of stock in a target company and sale of stock in its potential acquirer; if the takeover fails the arbitrageur may lose a great deal of money
arbitrage - a kind of hedged investment meant to capture slight differences in price; when there is a difference in the price of something on two different markets the arbitrageur simultaneously buys at the lower price and sells at the higher price
References in periodicals archive ?
Associated Capital Group operates as diversified financial services and investment management business with three core pillars of operations; a principal strategies group which invests the firms proprietary capital in new and existing businesses; an asset management business that emphasizes event driven value and merger arbitrage oriented alternative investment portfolios for institutions and high net worth investors; and institutional research services business, publishing research as Gabelli & company, and was founded in 1976.
A diversified financial services and investment management business, Associated Capital operates with three core segments; a principal strategies group that invests its proprietary capital in new and existing businesses; an asset management business that emphasises event driven value and merger arbitrage oriented alternative investment portfolios; and institutional research services business, publishing research as Gabelli & Company.
Event-Driven (credit, merger arbitrage and special situations funds)
Lastly, merger arbitrage remains another attractive strategy.
The merger arbitrage premium on BHI was so high for a long time that it was apparent the markets were very skeptical about antitrust authorities allowing the merger to move forward in the first place.
Different hedge funds might try to profit from merger arbitrage, buying distressed securities, dealing in derivatives such as futures contracts and options, focusing on bond market opportunities and so on.
The Paris Court of Appeal is to rule on the appeals filed by Charity & Investment Merger Arbitrage Fund (CIAM) and the Association for the Defense of Minority Shareholders (ADAM) on 29 April 2014.
08 per cent in August, while Merger Arbitrage and Special Situations saw narrow declines of -0.
There are now a half dozen ETFs based on hedge fund investing strategies such as merger arbitrage, relative value or macro/emerging markets marketed by Index IQ and Credit Suisse.
Thirty-six of the additional options are from the ProFunds Group, which specializes in leveraged and inverse funds; from Rydex, two funds with a relative-strength strategy; Eaton Vance's floating-rate income fund designed to soften the impact of rising interest rates on bond portfolios; and The Merger Fund, devoted exclusively to merger arbitrage.
New York-based merger arbitrage shop, Glazer Capital Management recently announced the launch of a higher leverage version of its Glazer Onshore Fund.
The new indices are Liquid Alternative Beta Index, Event Driven Liquid Index and Merger Arbitrage Liquid Index.