28/07/2010 Author: Elana Margulies

Sandell launches new event-driven offering

Sandell Asset Management has launched its latest event-driven strategy, with more expected in the near future. HFMWeek exclusively reported in November that the New York-based firm, headed by Thomas Sandell, was considering a couple of new hedge fund launches.

The alternative asset manager, which specialises in international, event-driven and multi-strategy investing, has established the first of those launches, the Castlerigg Merger Arbitrage Fund, according to a capital introduction document.

Merger arbitrage is one of the better performing hedge fund strategies this year, returning 1.67% YTD, beating the overall hedge fund index, which has only returned 0.08%, according to BarclayHedge.

The Sandell offering invests in the developed global markets in a variety of announced risk-arbitrage and similar opportunities, which are largely insensitive to directional influences.

A lack of deals in developed markets has forced attention toward developing economies. Recent M&A data shows a pick-up in cross-border activity but a drop in US mergers. Through June the value of total M&A deals were actually 4.4% lower than 2009, according to Dealogic.Sandell