Cheyne Raising Money For UCITS Merger Arb. Fund

Mar 2 2010 | 5:40am ET

Cheyne Capital is planning a UCITS III-compliant merger arbitrage hedge fund.

The London-based firm is already raising money for the new vehicle and is “looking at a UCITS format,” Chris Goekjian, chief investment officer, told the Reuters Private Equity and Hedge Funds Summit.

“What you’ve seen generally is hedge funds adapting their investment strategies to fit UCITS rules,” he said. “Merger arbitrage is one of the areas, and it’s got the liquidity.”

Goekjian did not say when the new fund would debut—only that it would. “If we don’t, someone else will,” he said.

Mergers and acquisitions activity is beginning to rise, but “the relative amount of capital deployed in these situations is much less than it was,” Goekjian said.

“What you get in merger arbitrage today, and this shows how much capital there is versus say 2007, is you can have positive carry plus the upside of a potential other bidder,” he added.


In Depth

Q&A: Sancus Capital And The Disruption Of The CLO Market

Oct 5 2017 | 6:28pm ET

Traditional collateralized loan obligation (CLO) funds in the U.S. market can offer...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Finding Success as Alternatives Converge

Oct 9 2017 | 4:00pm ET

Rising interest among institutional investors over the past several years has led...

 

From the current issue of