Venture launches merger arbitrage fund

Vertex One Asset Management is launching the Vertex Arbitrage Fund. It’s suitable for individual investors and institutions seeking absolute returns with low monthly volatility, says the company.

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It provides an equity alternative to fixed income products with less interest rate risk.

Focused on absolute returns, the fund provides lower risk than outright exposure to the equity markets by investing primarily in merger arbitrage. Merger arbitrage involves capturing a profit from the discount between the market price and the deal price for a target company in an announced, legally-binding merger situation. Arbitrage returns historically increase as interest rates rise reducing the interest rate risk of the fund. Additionally, with the majority of the return in the form of capital gains the fund will be a tax efficient investment vehicle.

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