Results for tag: "Risk Arbitrage"

Risk Arbitrage is a type of hedge fund strategy that seeks to capitalize on the price discrepancies between two securities that are related to a corporate event. This strategy involves buying the security that is expected to benefit from the event and selling the security that is expected to be adversely affected. Risk arbitrageurs attempt to profit from the difference between the current market price of the two securities and the expected price after the event. Risk arbitrageurs typically focus on mergers and acquisitions, spin-offs, tender offers, and other corporate events. They also look for opportunities in distressed securities, such as bankruptcies and restructurings. Risk arbitrageurs typically use a combination of fundamental and technical analysis to identify potential opportunities. Some of the companies in the Risk Arbitrage market include Citadel LLC, Balyasny Asset Management, Two Sigma Investments, and Point72 Asset Management. Show Less Read more