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Komfie Manalo, Opalesque Asia: The U.S. and Europe offer contrasting performance and outlook for merger arbitrage funds in 2016 and this year, said participants of the Opalesque 2017 France Roundtable.
While 2016 was a good year for merger arb funds in the U.S., last year was "horrible" for those funds in Europe. And while the start of 2017 is offering a very good situation for European deals, it looks pretty tricky across the Atlantic.
"Looking back for a moment, 2016 was a very good year for Syquant Capital, having achieved our best ever alpha generation and equally the highest Sharpe Ratio across our different Helium Funds," said Carl Dunning-Gribble from Syquant Capital. He continued, "2017 looks probably a little more tricky despite a very strong deal flow, particularly out of the US. The number of deals which we get on to the screen is really very good, and this includes Canada and Europe, although Europe is lagging somewhat because of the political uncertainties in France and Germany with the elections looming in 2017.
Some companies are probably waiting before they will actually make a move, and that explains why Europe continues to lag."
Further complicating this year is that plenty of deals that are coming out are not necessarily very safe and with high degree of uncertainty. Dunning-Gribble argued that it has been a...................... To view our full article Click here
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