29 SEP

2015

Research Paper , Resources

Making the most of mergers

Executive Summary

2014 has seen a sharp increase in M&A activity, and this trend looks set to continue – companies in Europe and North America still have well over USD 2 trillion left to spend in an environment where it is often cost-efficient to acquire other companies than build up their own operations. As well as creating attractive opportunities for traditional stock pickers, this increase in corporate activity offers an ideal timing for investing in a merger arbitrage strategy.

  • Mergers have made a comeback in 2014, and a high level of corporate activity looks set to continue.
  • In our view a merger arbitrage strategy is the best way to gain pure access to this increase in corporate activity.
  • Merger arbitrage strategies provide the potential for a low-volatility stream of returns that are uncorrelated to broader market movements. 
  • Candriam’s merger arbitrage strategy has a 14-year track record and has risen in value in 13 of those years.

Table of content

A SHARP UPTURN IN CORPORATE ACTIVITY…

…THAT WE EXPECT TO CONTINUE

HOW TO PROFIT FROM M&A

MERGER ARBITRAGE: PURE ACCESS TO THE DEAL

THE DOWNSIDE

MERGER ARBITRAGE INVESTING AT CANDRIAM

A GOOD TIME TO INVEST

ABOUT CANDRIAM

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