FOCUSED ON DELIVERING STABLE ABSOLUTE RETURNS
We are committed to providing solutions that offer our clients the ability to reduce total portfolio risk and earn positive absolute returns.
Westchester Capital Management specializes 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.
Merger arbitrage strategies have historically been positively correlated with interest rates, or the cost of capital; therefore if interest rates rise, the Fund may provide a hedge to the decreased value of bonds.
THE MERGER FUND
The Merger Fund®, launched in 1989, is a global merger arbitrage fund which principally invests in publicly announced mergers, acquisitions, takeovers and other corporate reorganizations, with the goal of profiting from the timely completion of these transactions. As part of a diversified portfolio, The Merger Fund® may serve to lower portfolio risk because returns have historically had a low correlation with equity and fixed income.
The Merger Fund® was the first mutual fund devoted exclusively to merger arbitrage and offers investors access to an alternative investment strategy in a regulated, transparent mutual fund with daily liquidity.
ALTERNATIVES: EVENT-DRIVEN FUND
The WCM Alternatives: Event-Driven Fund invests in event opportunities diversified across companies, sectors and asset classes globally. The Fund seeks to profit from companies involved in specific transactions such as reorganizations, spin-offs, recapitalizations, mergers, acquisitions, late-state bankruptcy, share buybacks or other special situations/restructurings.
Description of event-driven styles:
- Merger Arbitrage - classic arbitrage trade in which the stocks of two merging companies are simultaneously bought (target) and sold (acquirer);
- Special Situations - invests in corporate events such as management changes or exploits opportunities between different capital layers of a company;
- Restructuring – similar to the special situations strategy; allows a diversification of trading opportunities;
- Credit-Catalyst Opportunities - can be followed as a single strategy but benefits from integration in large event funds.
The inclusion of the Fund in an investment portfolio may provide an added layer of diversification while potentially reducing volatility.