Strategies

Top-Down/Bottom-Up Fundamental Long Strategy

The top-down approach firstly looks at the wider economy then into the industry and factors that may influence it, and lastly into the company’s financials and management.  The bottom-up approach does the exact opposite, It looks at the company’s health before considering anything else.

Merger Arbitrage

Investing in companies that are being acquired, but whose shares are trading at a discount to the acquisition price. Involves assessing both the likelihood of the transaction closing and the timeline to its completion.

Relative Value Arbitrage

Simultaneous purchase and sale of highly correlated securities with discrepancies in value – also known as “pairs” trading.

Convertible Arbitrage

Simultaneous purchase and sale of convertible securities and common shares of the same issuer, respectively.