For over 30 years, WCM has endeavored to deliver consistent, absolute returns through the disciplined execution of event-driven alternative investment strategies.
Specializing in Event-Driven Investment Strategies
Westchester Capital Management (WCM) is a registered investment adviser specializing in liquid alternative investment strategies. We manage a variety of investment portfolios using a combination of strategies to invest in publicly announced event opportunities such as mergers, acquisitions, takeovers, spin-offs and other corporate reorganizations, with the goal of profiting from the timely completion of these transactions.
Our investment management process is designed to deliver consistent results with low correlation to broader market returns, thereby lowering overall portfolio risk and potentially enhancing returns for a diversified portfolio.
Our Investment Philosophy
Create portfolios of high conviction ideas from markets around the globe.
- We believe that our worldwide focus enhances our ability to identify and profit from event-driven opportunities.
Invest in highly liquid situations.
- We select investments in companies with sufficient daily trading volume to support efficient movement into and out of positions.
- We favor larger, more liquid deals as we have found that they are often more inefficiently priced than smaller, less liquid deals.
Focus on absolute returns.
- We seek to hedge directional (market) exposure both at the individual deal level and at the portfolio level. The success of our investments are predicated on the successful completion of the corporate event.
- We concentrate on minimizing volatility, as well as transaction risk.
Evaluate the capital structure.
- We assess the capital structure of all potential investments to determine the security type which offers the most attractive risk/reward profile.
Avoid speculative situations and never invest on rumor.
- We require that every investment thesis be fact-based and have a defined timeline and expected rate of return.