Lyxor launches merger arbitrage fund on its Alternative Ucits Platform
Lyxor Asset Management has announced the launch of the Lyxor / Tiedemann Arbitrage Strategy Fund, a new Ucits-compliant vehicle, which is designed to give access to a arbitrage strategy in partnership with hedge fund firm TIG Advisors.
The fund is intended to benefit from TIG’s merger arbitrage expertise supported by large deal experience, strong focus on research and high market conviction.
The fund’s investment strategy is to play arbitrage deals from both a long and a short perspective by investing in securities that are subject to special events in North America, Europe, Australia, South America and Asia.
The investment team focuses on 0-30 day events within the merger arbitrage process and looks for wide spreads and complex deal opportunities relying on TIG’s research capabilities.
Natixis and TIG said that the current macro economic and financial landscape provides a robust environment for global merger arbitrage because:
– Cash reserves in corporate balance sheets are at extremely high levels,
– Interest rates are at historic lows,
– Global banking is stabilising,
– Complex deals provide significantly better spread opportunities.
Drew Figdor, portfolio manager for the strategy at TIG since 1993, said: “We look for complex mergers where our research can add value and are anticipating an uptick in mega-cap deals driven by the increased availability of funding, both for strategic buyers and private equity.”
The fund, now exported to six countries, is available on Lyxor’s Alternative Ucits Platform in EUR, USD, JPY, CHF, GBP, SEK and NOK. The fund offers weekly liquidity and independent risk management provided by Lyxor.