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Komfie Manalo, Opalesque Asia: Independent registered advisor ArbitrOption breezed through the tumultuous Brexit
referendum and outperformed its benchmarks. ArbitrOption was up 7.18% in
the first half of 2016 compared to the S&P 500 which gained 2.69%, while
the Credit Suisse Risk Arbitrage Index declined -1.90% and the Credit
Suisse Event-Driven Index up 2.75% during the same period.
Also on June 23rd, the day of the Brexit referendum, ArbitrOption gained
while the S&P 500 fell. ArbitrOption’s investment strategy focuses on
opportunities created by corporate events, such as acquisitions,
mergers, proxy contests, restructurings, shareholder activism, special
dividends, and spin-offs.
Heath Winter, managing partner of ArbitrOption Capital Management,
commented, "It was a pleasant surprise to ArbitrOption investors to see
that the strategy held up well in the face of June's market volatility.
On June 24th, when the 'Brexit’ referendum results were known and the
S&P 500 tumbled 3.6%, ArbitrOption investors actually experienced a
positive return of about 2% compared to the previous day. Some of that
gain was given back in subsequent days, as the market recovered and our
hedges fell in value. Ultimately, this is an event-driven strategy that
seeks to neither gain, nor lose, in reaction to the equity markets'
moves."
For the month of June, ArbitrOption's investment strategy returned 2.04...................... To view our full article Click here
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