Reuters – Bold merger arbitrage funds are set to enjoy rich pickings this year amidst a rebound in M&A activity, helped by the reluctance of many investors to trade complex deals after last year’s choppy markets, says hedge fund firm Cheyne Capital.
Simon Davies, whose European Event Driven fund, has raised $500 million (314 million pounds) since launch in October 2009, told Reuters that last year’s volatility had made many investors “quite risk averse”, meaning there is room for arbs to profit from more complex deals.
