The experienced longest-tenured portfolio management at Arbitrage Fund is a core advantage over global asset management peers. With 22 years of average asset-weighted tenure across the management group, it is clear they've been put through their paces. Arbitrage Fund's risk-adjusted performance compares similarly to competitors. Across its open-end and exchange-traded funds, the firm’s average five-year Morningstar Rating is 3.4 stars, which is about standard. Portfolio management turnover at Arbitrage Fund is higher than at peer firms, detracting from the overall assessment of the firm's stewardship. Turnover in the portfolio-management ranks can happen for a number of reasons, including mergers and liquidations, portfolio managers moving into other roles, or portfolio managers leaving the firm. In some cases, such change may not signal a serious or immediate problem at the firm, but can still be disruptive for investors, hinder the effectiveness of a firm’s investment processes, or suggest a weaker investment culture.
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