risk arbitrage

(redirected from Merger arbitrage)
Also found in: Thesaurus, Legal, Financial.

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 ?
The Credit Suisse Merger Arbitrage Liquid Index seeks to gain broad exposure to the Merger Arbitrage strategy using a pre-defined quantitative methodology to invest in a liquid, diversified and broadly representative set of announced merger deals, Bloomberg ticker, CSLABMA; and
our majority controlled institutional research services and merger arbitrage investment partnerships business.
08 per cent in August, while Merger Arbitrage and Special Situations saw narrow declines of -0.
is an investment management firm that specializes in merger arbitrage and event-driven investing.
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.
The Morningstar Corporate Actions Hedge Fund Index, which includes merger arbitrage hedge funds, rose 0.
The IQ ARB Merger Arbitrage ETF began trading late in 2009.
Founded in 1949, Mutual Series has a long history as deep value investors with a very distinct style, searching aggressively for investment opportunities in undervalued stocks, merger arbitrage situations, corporate reorganizations and distressed securities.
In addition to convertible arbitrage, other true convergence strategies include risk, or merger arbitrage, where two merging companies establish a relative price for their securities when the deal is announced.
About Quaker Event Arbitrage Fund Quaker Event Arbitrage Fund, a multi-strategy event-driven mutual fund that invests in corporate events including merger arbitrage, distressed investments, activist situations, capital structure arbitrage, liquidations and special situations, was launched on November 21, 2003.