Merger Arbitrage Explained | Hedge Fund Event Driven Strategy

Hedge Fund's event driven strategy aim to profit from short term events such as corporate actions. The most famous strategy is Merger Arbitrage. In this video I will explain how it works and how hedge funds profit from it using a real-life example: the acquisition of slack by Salesforce, due to take place in Q2 2021

Timestamps:

0:00 What is Merger Arbitrage?
0:35 What is a Merger?
0:54 The Strategy
01:41 A Theoretical Example
02:52 How Hedge Funds Trade the Event
03:15 The Terms of the Salesforce Offer to Slack
04:45 Does the strategy work in practice? A look at Price charts
05:32 The main risks

Useful links:

Short Selling explained: https://www.youtube.com/watch?v=7kgrLVe3w-o

#mergerarbitrage #eventdriven #hedgefundstrategy

Видео Merger Arbitrage Explained | Hedge Fund Event Driven Strategy канала Brainy Finance