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Alternative Market Briefing

CIAM: stressed merger arbitrage providing consistent returns

Monday, March 05, 2012

amb
Anne-Sophie d'Andlau
Bailey McCann, Opalesque New York:

Anne-Sophie d'Andlau is an expert in merger arbitrage. In 2010, she founded the France-based, CIAM merger arbitrage fund with Catherine Berjal and Frederique Bouchet from BNP Paribas. The three founders have deep knowledge of merger arbitrage. d'Andlau was recently interviewed by Matthias Knab for Opalesque TV.

CIAM focuses specifically on stressed merger arbitrage. Stressed merger arbitrage seeks out transactions that are officially announced, but the broader market sees as unlikely to go through. d'Andlau chose this strategy because it provides a wider field. CIAM has been able to yield 15% annualized returns through the strategy so far.

d'Andlau explains that she takes a deep dive into the details of the transaction and takes her time. CIAM only chooses transactions officially announced in Europe or North America. She also invests in wider spreads in order to mitigate downside risk. To date, she has had a success rate of 100% with the strategy.

"What is special about us is because we have a long expertise in merger arbitrage and specifically in what we call the stressed transactions where there are spreads and where there are scares in the market, so the spreads become wider. We also have a very concentrated portfolio which makes us a conviction run asset manager," d'Andlau says.

"We have very st......................

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