Corporate events can take many forms. Broadly, ArbitrOption specializes in merger and acquisition transactions, restructuring opportunities, corporate spin-offs and split-ups, shareholder agitation, and proxy contests.
The common element of all of these opportunities is an underlying event significant enough to create trading imbalances or fundamental uncertainty in the securities of the corporation experiencing the event. ArbitrOption's approach to event-driven investing is opportunistic, constructing a portfolio from individual components, trade-by-trade in response to market conditions. This flexibility results in an all-season approach to investing, where the strategy relies not on the cycle in any particular sector but rather on the ever-present existence of corporate change.
The ArbitrOption strategy employs a trading tactic that is particularly suited to events that create value. The strategy combines expertise in assessing an event's probable timeframe and terminal value with proficiency in trading listed call and put options. This approach results in enhanced returns and more accurate risk estimates. This is a managed account program, not a fund.