Meanwhile, the Pender Alternative Arbitrage Fund invests primarily in merger arbitrage opportunities, through which it aims to provide investors with constant absolute returns and low volatility.
“We believe the current market environment, combined with our unique expertise in identifying and analyzing M&A catalysts, makes this a great opportunity to launch a merger arbitrage fund,” said the fund’s portfolio manager, Amar Pandya.
In addition to near-record interest rates and rising inflation expectations, Pandya cited record market valuations and M&A activity as factors leading to wider merger arbitrage spreads, which open up opportunities for managers. skilled workers to achieve strong absolute returns.
By investing in such low risk strategies, investors can gain exposure to low correlation returns to traditional stocks and fixed income securities. The liquid alternative format also allows investors to benefit from the easy liquidity and transparency of a mutual fund, along with access to hedge fund strategies, low cost leverage, and low cost leverage. risk mitigation approaches such as short selling without paying the higher fees. traditional hedge funds.
“We are delighted to launch these funds for our clients,” said Felix Narhi, Chief Investment Officer of Pender. “We are adding the new liquid alternative mandates to our range of funds because they are low risk strategies with low volatility and drawdowns. Their low correlation to traditional asset classes perfectly complements Pender’s current equity and fixed income strategies.