Asset Management

Volatility got you nervous? The Merger Fund might be the answer

If you are not familiar with the Merger Fund, you should be.

Last year, as the S&P 500 blew up, the $3bn Merger Fund returned 7.7%. It achieved this via its merger arbitrage strategy — buying shares of the target company, which tend to rise, and selling or shorting the acquirer, expecting to make a profit when the acquisition is completed.

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Ray Dalio Sells Last Stake in Bridgewater, the Hedge Fund That Made Him a BillionaireExternal link

Ray Dalio Sells Last Stake in Bridgewater, the Hedge Fund That Made Him a Billionaire