28/07/2010
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
Increase text sizeIt’s interesting how one deal can often summarise the tenor of the times. Last week’s rubber stamping of the Man-GLG tie-up by the former’s shareholders may have been a formality, but in the wider context of the hedge fund sector, the tenets underpinning the move are far more interesting.
Collateral management is undoubtedly a big deal for the post-Lehman investor, but, as Danny Caplan, Deutsche Bank’s head of global prime finance sales, Europe, put it this week, “not all asset segregation is the same”.
"Firms must be careful not to take their eye off the ball, as enforcement action for reporting failures is increasing in frequency and severity"
As HFMWeek prepares to launch its new fresh look, this week’s Page 4 rolls out our industry confidence survey. Polling readers on their faith in the global economy, investor inflows and the impact of regulation we hope, on a weekly basis, to build a broad picture of the psychology of the hedge fund sector.
Read MoreHave your say on the hedge fund industry by taking part in two new HFMWeek surveys
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