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Komfie Manalo, Opalesque Asia:

Manikay Partners, the New York-based Australian-run hedge fund with $1.9bn in assets under management, is betting 50% of its money into M&A activity globally. Manikay’s exposure to M&A activities includes money invested by clients, such as the Lowy family and Goldman Sachs, reported the Financial Review.

Manikay president Steve Paridis was commented as saying, "There have been a lot of megadeals going and not as many people doing risk arb [arbitrage], merger arb these days. The regulatory environment is much more hazardous and much more political than it has ever been. Companies are pushing boundaries. It's clear organic growth is difficult to achieve and if you can get a merger and get a lot of synergies from putting that together then that's another way to grow well."

He added that the firm has to "work out the probabilities of being able to try and navigate through those and work out whether we're getting paid to take that risk. It's a great time in potential risk/reward – it's also the greatest time in the risk."

Manikay’s strong bet on M&A activities was triggered by the recent several big-ticket mergers, including the Anheuser-Busch InBev merger with SABMiller, as well as failed deals, such as the Haliburton-Baker Hughes and Electrolux-GE App......................

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