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Opportunities rise for event-driven managers

Fund of hedge fund managers International Asset Management and LGT Capital Partners are seeing an increase in opportunities for event-driven managers.

IAM has a neutral view of returns from these strategies, which it sees as medium risk. It says merger arbitrage deals have provided steady returns for event-driven managers who are able to benefit from corporate events that are less dependent on market conditions.

But it also thinks more deals and wider spreads would benefit returns. A spread is the gap between a company’s current trading price and its value under the terms of the acquisition. A wider spread means a better return for the hedge fund.

LGT is positive on the outlook for mergers and acquisitions as it believes fear and change are driving returns. It says event-dri-ven strategies recently produced positive returns due to asset prices recovery and that M&A activity has stayed strong despite the usual summer slowdown. Deals are also more solid and are being done at reasonable valuations, which LGT feels is good for event-driven managers.

Head of investment management Thomas Weber says: “While we are still in an early stage of a recovery in M&A, the solidity of the deals combined with an optimistic outlook indicates that the M&A area provides attractive investment opportunities.


UK industry data falls to 2010 low

UK manufacturing data slumped to a 2010 low in August, refuelling fears of a double dip. The Chartered Institute of Purchasing and Supply PMI index fell to 54.3 last month from 56.9 in July. This was the lowest index measurement since November 2009. RBS analyst Ross Walker says the major concern in the data is […]

ACA says 41% of larger employers considering levelling down

The Association of Consulting Actuaries has warned that 41 per cent of larger employers are considering levelling down existing pension arrangements due to auto-enrolment. The ACA’s findings contrast with recently released research from the Department for Work and Pensions downplaying this risk. Last month the Department of Work and Pensions released survey results revealing that […]


Treasury to cut staff numbers by 25%

Chancellor George Osborne is planning a 25 per cent staff cut at the Treasury as part of the Government’s public sector cull. The Financial Times this morning reports that Osborne wants to see staff numbers cut from 1,350 to 1,000 by natural attrition over the next four years. Osborne hopes to settle departmental budgets by […]


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