Merger arbitrage : how to profit from global event-driven arbitrage /
"Mitigate risk and increase returns with an alternative hedge fund strategy Merger Arbitrage: How to Profit from Event-Driven Arbitrage, Second Edition is the definitive guide to the ins and outs of the burgeoning merger arbitrage hedge fund strategy, with real-world examples that illustrate ho...
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| Online Access: |
Full text (MCPHS users only) |
|---|---|
| Main Author: | |
| Format: | Electronic eBook |
| Language: | English |
| Published: |
Hoboken, New Jersey :
Wiley,
2016
|
| Edition: | Second edition. |
| Series: | Online access with DDA: Askews (Economics)
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| Subjects: | |
| Local Note: | ProQuest Ebook Central |
Table of Contents:
- Series Page
- Title Page
- Copyright
- Table of Contents
- Preface
- Acknowledgments
- Part One: The Arbitrage Process
- 1. Introduction to Merger Arbitrage
- Notes
- 2. The Mechanics of Merger Arbitrage
- Cash Mergers
- Stock-for-Stock Mergers
- Note
- 3. The Role of Merger Arbitrage in a Diversified Portfolio
- Volatility of Stocks Going through a Merger
- Merger Arbitrage Universe
- Merger Arbitrage Spreads
- Performance Characteristics of Merger Arbitrage
- Performance of Merger Arbitrage outside the United States
- Risk and Return of Merger Arbitrage Funds
- Benefits of Merger Arbitrage in a Diversified Portfolio
- Benefits of Merger Arbitrage in a Rising Interest Rate Environment
- Quantitative Easing
- Notes
- 4. Incorporating Risk into the Arbitrage Decision
- Probability of Closing
- Severity of Losses
- Expected Return of the Arbitrage
- Notes
- Part Two: Pitfalls of Merger Arbitrage
- 5. Sources of Risk and Return
- Deal Spread
- Two Aspects of Liquidity
- Beneficial Participation of Arbitrageurs
- Timing and Speed of Closing
- Dividends
- Short Sales as a Hedge and an Element of Return
- Leverage Boosts Returns
- Covered Call Writing
- Commissions and Portfolio Turnover
- Bidding Wars and Hostile Bids
- Chinese Companies
- Notes
- 6. Deal Structures: Mergers and Tender Offers
- Mergers
- Scheme of Arrangement
- Tender Offers
- Comparison of Mergers and Tender Offers
- Burger King Provision: The Best of Both Worlds
- SEC's Approach to Regulation
- Notes
- 7. Financing
- Types of Debt Funding
- Financing of Mergers versus Tender Offers
- Uncertain Merger Consideration
- Conflicted Role of Investment Banks
- Fairness Opinions
- Systemic Risk
- Notes
- 8. Legal Aspects
- Merger Process
- Corporation Codes
- Takeover Code and Its Derivatives
- Key U.S. Court Decisions
- Takeover Defenses
- Creeping Takeovers and Mandatory Acquisitions
- Best Price Rule
- Market Manipulation
- Notes
- 9. Management Incentives
- Management Compensation
- Continuing Management Interest in Private Equity Buyouts
- Long-Term Planning in Management Buyouts
- Milking a Company through Related Party Transactions
- Notes
- 10. Buyouts by Private Equity
- Private Equity's Advantage
- CEOs Don't Want to Sell to the Highest Bidder
- Private Equity Funds Have Their Own Agenda
- Buyouts as Financial Engineering
- Activists Replace Private Equity
- Notes
- 11. Minority Squeeze-Outs
- Boards' Lack Effectiveness during Squeeze-outs
- Minority Shareholders Are in a Tough Spot
- Family Control
- Notes
- Part Three: Investing in Merger Arbitrage
- 12. Government Involvement
- Antitrust Enforcement
- Tax Policy
- Securities Regulators
- State and Provincial Governments
- National Governments
- China: The Great Wall of Laws
- Trade Unions
- Notes
- 13: Four Ways to Fight Abuse of Shareholders in Mergers
- "Just Sell" Is for Losers
- The Rise of Shareholder Activists
- Case for Activist Merger Arbitrage
- Legal Tactics
- Public Opposition
- Notes
- 14. Investing in Arbitrage
- Trading versus Investing
- Leverage and Options
- Shorting Stocks
- Transaction Costs
- Managing the Cash Position
- Risk Management
- Merger Arbitrage Indices
- Separate Accounts
- Hedge Funds and Liquid Alternatives
- Notes
- About the Author
- Exercises
- Index.
