Industry Updates

Diva Synergy Fund gains over 27% in 2010; Bernheim, Dreyfus anticipates further strong year for M&A (and for the Fund)

Friday, January 07, 2011

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Opalesque Industry Update - Paris-based M&A investment manager, Bernheim, Dreyfus, has announced continuing strong performance for its flagship Diva Synergy Enhanced Fund through 2010. In the 12 month period, the Fund’s dollar class gained +27.35% net and the euro class +27.91%.

The strength of Diva Synergy reflects, to some extent, the growth in global mergers and acquisitions. According to Bernheim, Dreyfus’s January research letter, “the value of worldwide M&A totalled $2.4 trillion during the full year 2010, a 23% increase from comparable 2009 levels and the strongest full year period for M&A since 2008.

Looking forward, the letter anticipates “deal activity will remain solid, focused around strategic deal-making. Resurgent leveraged buyout activity is supported by favourable conditions in the credit markets.”

Bernheim, Dreyfus highlights three sectors where research predicts 2011 M&A will be particular buoyant:

IT. There were more than 70 tech/IT acquisitions – lathe and small – by the major industry leaders in 2010, compared to 33 in 2009 and 55 in 2008. The tech sector is certainly recovering from the recession and not shying away from deals.

Financial. With new government regulations on the books or being written in response to Dodd-Franks, many of the big banks will be looking to unload certain riskier business units, like those tied to derivatives and hedge funds. Other companies will be eager to jump in and enter the lucrative areas of financing and banking.

Healthcare. Big pharmaceutical companies like Eli Lilly, Pfizer and Merck, along with biotech firms and those in the health care services sectors will all be on the prowl. Increasing demand from an ageing population, health care legislation and expiring patents creates the need to buy smaller biotech firms with new drug discoveries.

(press release)

Bernheim, Dreyfus & Co

Paris-based Bernheim, Dreyfus & Co was founded in 2006 as an alternative investment firm focusing on M&A-related strategies, managing an event driven hedge fund – Diva Synergy.

Diva Synergy is managed by Amit Shabi and Lionel Melka. Lionel has 10 years’ of experience as an M&A advisor for blue chip clients in prestigious banks as Lazards, Calyon and Rothschilds. He has been involved in more than 20 major transactions totalling more than $50 billion.

Amit has long experience in asset management and in sales of OTC hedging strategies in companies like Rothschild and Man Group...Corporate website: Source
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