This is the Merger Arbitrage Spread Performance September 30, 2018 analysis. A review of the top 20 tradeable cash based merger arb spreads in the USA for the week 24th – 28th September. Included in this week’s report are the winners, losers and overall performance of the portfolio. This report is based upon the Merger Arbitrage Limited top 20 (T20) list of cash merger arbitrage spreads available as at 23rd September.
Performance Analysis
As seen from the Sunday Funday posting on 23rd Sept, EGC topped the table with the largest profit potential and indeed delivered an all conquering positive return of 6.23% for the week. The next biggest gainer was AHL, up $0.30 per share, or 0.72%. Both these stocks remain in the top ten spreads for the coming week still offering attractive returns. AVA & GPT also posted positive returns gaining 0.2% and 0.07% respectively.
On the downside, NXTM declined 0.99% for the week and IDTI was down 0.15%. The spreads of the remaining deals all fell slighly.
This gave an average return for the top ten of 0.58% almost entirely due to the performance of EGC. Without this the top ten would have fallen by 0.43%.
The most recent list of the largest spreads is already available, and you can check out the rules for inclusion here. Our free merger arbitrage spread calculator is also available for FREE download. This can be used to value the spread of any stock-for-stock deals you may be interested in.
