This is the Merger Arbitrage Spread Performance December 16, 2018 analysis. A review of the top 20 tradeable cash based merger arb spreads in the USA for the week 10th – 14th December. 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 9th December.
We’ve recently added some additional information
- The standard deviation of returns for the top 20 in addition to the average return. This gives our readers a better idea as to the movement within the portfolio.
- The change in the VIX (relative percent) is also included as a complimentary figure to the performance of the SPY
Winners
This week’s best performer was Avista Corp (AVA) gaining 2.53%. This rebound follows the announcement last week of the failure to be given the merger go-ahead by Washington State regulators. Avista and Hydro One have vowed to challenge that ruling. Arb’s are speculating on the limited downside could provide an attractive bet were the challenge to be successful. XO Group Inc. (XOXO) also performed strongly, up 0.92% as it’s deal near its completion. There is only $0.02 left in this spread. The other strong performer of note was Tribune Media Company (TRCO) 0.82% for the week. This follows an upgrade to Nextstar media (TRCO’s suitor) during the week.
Losers
Portfolio Performance
MNA SPY VIX Returns Table 20181214
*We have not included MRGR ETF for liquidity reasons. Click the table to read our Merger Arbitrage ETF Review and see a discussion of how liquidity and other factors affect the performance of these products.
And Finally…
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.
