ABX

This perennial investment strategy has been a mainstay of hedge funds and event driven investment managers since the takeover boom that started in the 1970’s. Yet it has continued to intrigue and inspire traders and investors ever since. Like most investing, arbitraging can be as difficult or as simple as you want it to be. But unlike traditional investing, merger arbitrage has a binary outcome. The values of which can be calculated in advance. It’s up to the arbitrageur to assign a risk to these outcomes.