Lionel Melka and Amit Shabi, founding partners of Bernheim, Dreyfus & Co., present the investment strategy of merger arbitrage and to discuss its performance over time, how to set it up, the risks that are associated with it and many details in its implementation in their new book. Merger arbitrage is a common strategy within the hedge fund community and it consists in using mergers and acquisitions as investment opportunities. Depending on the type of the operation, the strategy takes different forms, which are discussed in detail. Specific types of operations are also studied, such as hostile offers and leverage buyouts, because they present their own unique challenges to professionals. In rich explanatory detail, the book gets quickly up to speed on basic risk arbitrage concepts, terminology, and equations. It walks, step-by-step, through all the elements of the risk arbitrage process, focusing on critical risks that need to be assessed and managed. Sharing numerous case studies and vignettes with readers, it describes a complete methodology for safely navigating through the world of risk arbitrage. From researching prospects and determining positions, to hedging and trading tactics, Melka and Shabi present the full complement of sophisticated risk arbitrage techniques and is a must read for finance and investment professionals who want to take advantage of the nearly limitless opportunities afforded by today’s rapidly changing global business environment. What makes the book so unique is the diverse and unique set of professional experiences that the authors can share with readers.
Book Details:
- Author: Lionel Melka
- ISBN: 9781118440018
- Year Published: 2012
- Pages: 310
- BISAC: BUS027000, BUSINESS & ECONOMICS/Finance
About the Book and Topic:
Lionel Melka and Amit Shabi, founding partners of Bernheim, Dreyfus & Co., present the investment strategy of merger arbitrage and to discuss its performance over time, how to set it up, the risks that are associated with it and many details in its implementation in their new book. Merger arbitrage is a common strategy within the hedge fund community and it consists in using mergers and acquisitions as investment opportunities. Depending on the type of the operation, the strategy takes different forms, which are discussed in detail. Specific types of operations are also studied, such as hostile offers and leverage buyouts, because they present their own unique challenges to professionals. In rich explanatory detail, the book gets quickly up to speed on basic risk arbitrage concepts, terminology, and equations. It walks, step-by-step, through all the elements of the risk arbitrage process, focusing on critical risks that need to be assessed and managed. Sharing numerous case studies and vignettes with readers, it describes a complete methodology for safely navigating through the world of risk arbitrage. From researching prospects and determining positions, to hedging and trading tactics, Melka and Shabi present the full complement of sophisticated risk arbitrage techniques and is a must read for finance and investment professionals who want to take advantage of the nearly limitless opportunities afforded by today’s rapidly changing global business environment. What makes the book so unique is the diverse and unique set of professional experiences that the authors can share with readers.
The current wave of corporate mergers, acquisitions, restructurings, and similar transactions has created unprecedented opportunities for those versed in contemporary risk arbitrage techniques. At the same time, the nature of the current merger wave has lent such transactions a much higher degree of predictability than ever before, making risk arbitrage more attractive to investors of every stripe. Surprisingly, there is little transparency and instruction for investors interested in learning the latest risk arbitrage techniques. This book helps readers understand the inner working of the strategy and hedge funds which engaged in this investment strategy.
Book has full support of Bernheim, Dreyfus s entry into the U.S. marketplace. Highly technical but engaging book (even though it does not seem so, thanks to the numerous examples) based on the authors respective experience in the financial industry and educational at the same time. Cases included: Oracle/Sun, Dow Chemical/Rohm & Haas, and Sanofi-Aventis/Genzyme. Highly pragmatic book: the authors have been running merger arbitrage funds for years and the book is directly based on their experiences with actual merger arbitrage deals. They explore this sophisticated investment strategy in simple, descript terms, which is perfect both for people looking to implement this strategy and people looking to invest/understand it.
About the Author
Lionel Melka (Paris, France) is Co-Manager s degree in Finance from Sorbonne University. Amit started his career in the strategy department of LCF Rothschild Asset Management. After this experience in traditional asset management, Amit worked in the Capital Markets divisions of MAN Group and Cantor Fitzgerald selling sophisticated financial instruments to hedge funds, institutional and HNWI investors. Foreword/Preface by Michael Zaoui, former Head M&A at Morgan Stanley for 20 years.