The fund seeks positive absolute returns by investing in companies in the United States.
The investment process starts with a list of companies in the benchmark index and the research team utilizes quantitative techniques and fundamental analysis to identify investment opportunities.
Next, the research team relies on a a predominantly rules-based merger arbitrage strategy.
Merger arbitrage involves investing, directly or indirectly, in equity securities of a company that is involved in a significant corporate event, such as merger or acquisition transactions, spin-offs, divestitures or stock or bond repurchases.
As part of the research process, the team utilizes a variety of hedging techniques including short selling.
Then the manager constructs a portfolio of stocks from a list of companies favored by the research team and allocates capital based on its conviction level.
The fund may invest in companies that are announced as targets of merger transactions, or that are publicly known to be under consideration for such transactions, both friendly as well as hostile.
Although the fund typically invests across a variety of industries and sectors, the manager may invest a significant percentage of the fund’s net assets in a single or small number of industries or sectors.
The fund may invest globally (including in emerging markets).
Securities in which the fund invests may be denominated in U.S. dollars or foreign currencies.
