Cheyne Raising Money For UCITS Merger Arb. Fund

Mar 2 2010 | 4:40am 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

Steinbrugge: Will Hedge Funds Help or Hurt During the Next Market Correction?

Sep 7 2016 | 11:55pm ET

Most investors have become accustomed to quick rebounds when markets correct, but...

Lifestyle

Quattrex Sports AG Debuts Soccer-Focused UCITS Fund

Sep 9 2016 | 9:54pm ET

Innovative alternative investment company Quattrex Sports has unveiled a new UCITS...

Guest Contributor

Malik: The Ever-Changing Middle Market and The Entering Class of 2016

Sep 2 2016 | 5:01pm ET

Deal sourcing and origination is only going to get more competitive given current...