Risk Arbitrage: An Investor's Guide

ISBN-13: 9780470379745 / Angielski / Twarda / 2018 / 368 str.

Keith M. Moore;Jason Dahl;Christopher Pultz

Opis

The definitive guide to risk arbitrage, fully updated with new laws, cases, and techniques Risk Arbitrage is the definitive guide to the field and features a comprehensive overview of the theory, techniques, and tools that traders and risk managers need to be effective. This new edition is completely updated and fully revised to reflect the changes to laws and technology and includes new case studies and a detailed discussion of computer-based trading systems. Readers gain deep insight into the factors and policies that affect merger transactions, and the new developments that allow individuals to compete with professionals in managing risk arbitrage portfolios. The book provides techniques for computing spreads and determining risk, with practice exercises that allow readers to become confident with new methods before using them professionally. The current wave of corporate mergers, acquisitions, restructurings, and similar transactions has created unprecedented opportunities for those versed in contemporary risk arbitrage techniques. At the same time, the nature of the current merger wave has lent such transactions a much higher degree of predictability than ever before, making risk arbitrage more attractive to all types of investors. Risk Arbitrage provides the essential guidance needed to participate in the business.

• Get up to date on the most recent developments in risk arbitrage
• Examine new mergers and the legal changes that affect them
• Learn how computers and trading systems have affected competition
• Use the tools that enable risk determination and spread computation

Both the growth in hedge funds and the changing nature of the merger and acquisition business have affected risk arbitrage processes and techniques. For the finance professional who needs expert guidance and the latest information, Risk Arbitrage is a comprehensive guide.

Spis treści

Chapter 1: Introduction

Chapter 2: What Is Risk Arbitrage?

Chapter 3: The Risk Arbitrage Industry

Chapter 4: Estimating the Return on a Risk Arbitrage Position

Chapter 5: Estimating the Risk of Arbitrage Transactions

Chapter 6: Estimating the Probability of a Transaction s Occurrence

Chapter 7: The Risk Arbitrage Decision Process

Chapter 8: Contested Takeovers

Chapter 9: Trading Tactics

Chapter 10: Portfolio Management

Chapter 11: The Exciting World of Risk Arbitrage

Appendix A: Tender Offer Document

Appendix B: Airgas/Air Products Text of Court Decision

Appendix C: Whole Foods Markets Excerpts from Proxy Statement

Appendix D: Straight Path Communications Excerpts from Proxy Statement

Appendix E: Straight Path Communications Excerpts from STRP s 8–K Filed on April 13,  2017

Acknowledgments

Index

O autorze

KEITH M. MOORE heads up FBN Securities Event–Driven group. Prior to joining FBN Securities, Keith served as Kellner DiLeo & Company′s Co–Chief Investment Officer, Portfolio Manager of the KDC Merger Arbitrage Fund and Director of Risk Management. In addition to being the author of Risk Arbitrage: An Investor′s Guide, he has authored the Mergers & Acquisitions chapter for Corporate Finance, published by the CFA Institute as well as a number of academic journal articles. Keith′s arbitrage career spans research, trading and portfolio management at Neuberger & Berman (1975–1983 and 1989–1996), Donaldson Lufkin & Jenrette (1983–1989) and Jupiter Capital (1997–2006). A former Assistant Professor of economics and finance at St. John′s University and Adjunct Professor at the University of Rhode Island and New York University, Keith has earned numerous academic awards and honors. He holds a BS and a PhD from the University of Rhode Island and an MBA from New York University.

Blurb

Advance Praise for Risk Arbitrage: An Investor′s Guide, 2^nd Edition

"Whenever I think of risk arbitrage, I am reminded of the old Wall Street proverb, ′Give a man a fish and you feed him for a day. Teach him how to arbitrage and you feed him forever.′ With the skills learned from Moore′s book, you will never go hungry."
Paul D. Sonkin, co–author of Pitch the Perfect Investment: The Essential Guide to Winning on Wall Street

"Keith provides good insights for looking at risk arb from multiple prisms, and in particular, from a legal point of view. A must read for those seeking investment opportunities generating absolute returns."
Mario Gabelli, founder, Chairman, and CEO of GAMCO (Gabelli Asset Management Company) Investors, Inc.

"Keith Moore is that rarest of birds in Wall Street. A highly experienced practitioner of one of the investment community′s more arcane arts who also boasts the intellectual curiosity and firepower to delve deeply into the hows and whys of situations that have led to both spectacular investment successes and failures in the field. Not to mention the tenacity to pursue those explanations not only in the trenches of the Street but through the academic research that resulted in his PhD and has enriched the educations of countless business students. Now, in his trademark precise prose, Keith has updated his groundbreaking 2000 book on Risk Arbitrage, to the great good luck of a new generation of prospective practitioners."
Kate Welling, Editor and Publisher of Welling on Wall St., an online journal for professional investors, and author of Merger Masters (Columbia University Press, 2018)

"Seldom do financial books become page turners, but the presentation in Keith Moore′s book grabs the reader more like a novel than a textbook. A blend of great story telling, theoretical rigor, and practical experience, this book provides an outstanding approach to the risk arbitrage process, with explanations of not just what and why but also of how and when. The book is up to date and replete with the details of actual cases."
Dennis McLeavey, Ram Fund Advisor, Professor Emeritus of Finance at the University of Rhode Island, and former Vice President of Curriculum Development at CFA Institute