Risk Arbitrage: Abbott Labs and Alza Harvard Business Review Case Study 1. BACKGROUND Risk Arbitrage is essentially just arbitrage with some element of risk. Three main types of risk arbitrage are merger and acquisition arbitrage (also known as just merger arbitrage)‚ liquidation arbitrage‚ and pairs trading. We will focus on merger arbitrage‚ as it pertains to this case study. Merger arbitrage is an investment strategy that chooses to capitalize upon arbitrage that presents when a merger
Premium Stock Long Hedge fund
“UK Open-Ended Mutual Funds Industry pre and post the Global Financial Crisis: Performance Persistence and Return Attribution” By Dimitris Xydias Abstract This dissertation project tests the persistence in performance of a survivorship bias controlled sample of 574 UK Open-End Mutual Funds for the period between 31/12/1999 and 31/12/2011 and decomposes the funds’ returns into factors. The former is done by employing both parametric and non-parametric approaches to identify persistence and the
Premium Mutual fund Investment Hedge fund
efficiency. 3 Prof. Doron Avramov‚ The Jerusalem School of Business Administration‚ The Hebrew University of Jerusalem‚ Investment Management Syllabus: Contents Analyzing performance of mutual funds; Comparing properties of mutual funds and hedge funds; Examining evidence on profitable trading strategies in global and domestic markets‚ especially‚ the size‚ value‚ price momentum‚ earnings momentum‚ and volatility effects in stock prices; Forming optimal portfolios with constraints; Investing
Premium Investment Hedge fund
Lessons Learned From Long Term Capital Management LTCM was selling liquidity as their fund structure was more similar to an investment bank than a typical hedge fund. When investors or issuers need to change their positions or risk exposure‚ they would go to an investment bank or dealer to buy or sell securities. In turn‚ the dealer would utilize the capital markets to offload the exposure. LTCM was often on the other side of these transactions‚ in some sense‚ wholesaling risk to the investment
Premium Financial markets Short Hedge fund
internal and external forces so you can formulate a clearer path to an outcome‚ whether it’s the right one or not.” For investors‚ using a SWOT analysis can give insight into a company’s worth beyond what the data shows‚ says James Early‚ a former hedge fund manager who is now an advisor to the investor newsletter service run by the Motley Fool‚ a financial services company. “The great lie of investing is that models are precise. Numbers give the illusion of security‚” Early notes. “Having that SWOT
Premium Stock market Financial services Apple Inc.
INVESTIGATING MUTUAL FUNDS IN GHANA: IT’S RISK‚ RETURN AND PERFORMANCE ABSTRACT Over the years‚ investors have been attracted to mutual funds. This study seeks to do an-depth analysis of the Ghanaian mutual fund industry between the years 2006 and 2010. An exhaustive literature review on mutual funds and portfolio diversification will be conducted. An assessment of the performance of mutual funds will be done using the Sharpe and Sortino ratios as well as the Jensen Alpha. Comparisons will be made
Premium Mutual fund Investment Hedge fund
The Glass Menagerie and What’s Eating Gilbert Grape? The Glass Menagerie was written by Tennessee Williams and What’s Eating Gilbert Grape was written by Peter Hedges. The first main difference between these two works is that The Glass Menagerie was a memory play that premiered in 1944 and What’s Eating Gilbert Grape was a novel in 1991 that was later adapted into a film in 1993. The main factor in The Glass Menagerie is that the characters and the story mimic the author’s own life‚ which he
Premium Grocery store Protagonist The Glass Menagerie
“Imagination‚ the supreme delight of the immortal and the immature‚ should be limited. In order to enjoy life‚ we should not enjoy it too much.” Vladimir Nabokov (Russian novelist) once stated. In the novel What’s Eating Gilbert Grape by Peter Hedges Gilbert Grape the son of Bonnie Grape and the late Albert Grape in Endora‚ Iowa and he works as a grocery clerk‚ he tends to be impulsive‚ immature‚ and enclosed to himself during the book. He goes through tough times in the house when he’s the man
Premium
Beta Management Summary of facts: Beta Management is new‚ small mutual fund that is run by Ms. Wolfe. She has recently begun to work full time at her mutual fund due to its increasing growth. With the fund’s increasing growth over the past year Ms. Wolfe has started to have inquiries from larger mutual funds wanting her to manage some of their money. Ms. Wolfe does not have much experience in managing money and needs some advice on how to deal with the larger institutions. Problem: Beta Management
Premium Mutual fund Investment Bond
Yale’s $8 billion man David Swensen has made better returns for Yale than any portfolio manager at any university. He has a word of advice: don’t try this at home. by Marc Gunther ’73 July/August 2005 Marc Gunther is author of Faith and Fortune: The Quiet Revolution to Reform American Business and senior writer at Fortune magazine. Last spring‚ Yale president Richard C. Levin ’74PhD held a cocktail reception for David F. Swensen ’80PhD‚ who was celebrating his 20th year as Yale’s chief investment
Premium Investment Mutual fund Hedge fund