Merger arbitrage

Discussion in 'Trading' started by Lucias, Jul 3, 2011.

  1. Lucias


    Is anyone using this as their primary strategy? Is it very profitable? What is the basic strategy, if you will? Do you buy cheap companies that are acquisition targets while holding short sister companies with greater cap? Or is this something you can do after the news is released? Are there merger arb indexes or funds? It seems like one would need a lot of capital to make use of this strategy.