Paris-based investment manager Bernheim, Dreyfus & Co. this month marks the 5th anniversary of its flagship event driven Diva Synergy fund, which has returned 23.2% since inception.
The fund targets absolute returns with a strategy focused on M&A situations; its current portfolio includes about 50 situations in Europe and North America. The management team focuses on stock picking, combining bottom-up fundamental research with disciplined risk management. Capital is deployed in two sub-strategies—merger arbitrage and special situations.
A UCITS version of the fund, targeting European investors, was launched in June 2011.
The firm believes the M&A market is in recovery— pointing to the recent Google/Motorola, Gilead/Pharmasset and Kinder Morgan/El Paso transactions as proof. The pace of this recovery, it says, will be driven by the financial health of global corporate, reasonable valuations and the need to find growth, once macroeconomic concerns have vanished.
Said Amit Shabi, co-founder of Bernheim, Dreyfus & Co.: “In such an investment strategy, where the length of the track record is key in evaluation of a manager’s skill, we are particularly proud of the work done over these five years, during which our original money management approach has shown its ability to generate absolute performances, regardless of market conditions.
“We are now at the early stage of a new M&A cycle, which will create many investment opportunities for our strategy. Our fund remains committed to giving investors access to a sophisticated strategy, focused on mergers and acquisitions, while offering them liquidity and transparency.”