LIM’s Arbitrage strategy concentrates on publicly announced transactions, both domestic and international, where the terms of the deal have largely been defined and disclosed. Investors in this space are rewarded for avoiding the broken deals. We spend substantial time analyzing the viability of each announced transaction.
- Low correlation to stocks and bonds
- Performance is not dependent on general equity trends
- Historically has experienced significantly less volatility than the overall stock market
- Average portfolio duration is approximately 90 days: allows for the opportunity to capture upward movements in short-term rates
- 30-year history of managing the strategy
- Flexibility to supplement portfolio during periods of low merger activity with fixed income and other complementary opportunities, such as SPACs (special purpose acquisition companies).
For performance information for LIM's Merger Arbitrage (unleveraged) composite, please contact LIM Marketing at Marketing@LongfellowIM.com.