NEW YORK — Water Island Capital, LLC, adviser to The Arbitrage Fund, is proud to announce that the Fund has achieved its five-year track record effective September 19, 2005. Over the last fiveyears, as of September 30, 2005, the $200 million fund beat the S&P 500 by an average of 8.35% per year, or 52.5% on a compounded basis.
The Arbitrage Fund, a registered no-load mutual fund, delivered an annualized return of 6.8% since its inception, versus the S&P 500, which lost 1.5%, on average, over the same five-year period. The Fund’s five-year performance record also compares well with its largely unrestricted merger arbitrage hedge fund peer group, which returned an average of 4.1% over the same timeframe, as measured by the HFRI Index.
