CAPITAL APPRECIATION WITH REDUCED VOLATILITY
At Westchester Capital Management (WCM), we seek to protect our investors' capital while also delivering strong risk-adjusted returns.
Seeking to Preserve Wealth in Up and Down Markets
We are committed to providing solutions that reduce overall portfolio risk while providing absolute returns regardless of the market environment. To achieve the goals described above, we pursue the following investment principles:
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.
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.
A Time-Tested Investment Process
Our investment process is focused on identifying corporate restructurings that present attractive arbitrage opportunities with a high likelihood of being completed. This rigorous, highly disciplined process enables us to carefully screen potential investments across multiple categories and criteria. Over more than 30 years, we have had a greater than 98% success rate at selecting deals which have been completed.
Explore our process: