Tue, 2 Jul 2013
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The Medalist-rated Merger and Arbitrage funds both invest in publicly announced merger transactions, but each has its own special tilt.
This merger -arbitrage fund has little correlation to the broader equity and fixed-income markets and has a very low expense ratio.
If deal activity continues, these merger -arbitrage funds could represent great opportunities going forward, says Morningstar's A.J. D'Asaro.
With the uptick in merger and acquisition activity, whether it be for tax-inversion or strategic reasons, investors should focus on the target company, which can benefit from the deal immediately.
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