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Approach

One of the many ways that SwissArb is able to offer differentiated opportunities is through our balanced approach to risk arbitrage and rights issue arbitrage.

We see them as complementary strategies in terms of risk profile. We believe that by allocating to long and short volatility strategies - along with rigorous portfolio construction and position limits - attractive risk-adjusted returns are achievable.

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Event driven /
Risk arbitrage trades

Merger arbitrage opportunities arise when a listed company is being bought by another company (listed or unlisted), private equity fund, etc.

We look to diversify across 200 to 300 arbitrages in our portfolio, with thoughtful deal selection to avoid the impact of extreme events or a deal not materializing.

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200+
arbitrages

Event driven /
Risk arbitrage trades

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Hedged Rights
Issue Arbitrage

Rights issue arbitrage is a mechanical arbitrage between two related listed securities: an option right and its underlying share.

We use this technique to take advantage of market imperfections at any given time due to the discount/premium between related securities.

The operation is risk-free, but not without costs, so we carefully evaluate whether an arbitrage opportunity truly exists.

Hedged Rights
Issue Arbitrage

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The SwissArb team works exhaustively in our search of worthwhile opportunities in the space. We consider all regions, transaction sizes, and asset types. This creates greater diversification, which in turn reduces risk - and we recognize the importance of prudent risk management in the success of effective portfolio management.

We apply a rigid process for deal selection, focus on legally binding mergers only, and manage a high turnover of ideas and trades within our portfolio.

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Some of the opportunities we consider include corporate structure change.

Where we identify and analyze corporate events that trigger price movements in order to extract value for our investors.

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Restructurings

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Recapitalizations

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M&A

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IPO

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Spinouts

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Delistings / relistings