GLOBAL - Mellon HBV Alternative Strategies, part of the Mellon Financial Corporation, has added a global arbitrage investment discipline to its funds management capabilities.
The move follows an acceleration in public company consolidations due to technological and regulatory changes, and globalisation, said Mellon, although opportunities currently look limited. According to Mergerstat and Dealogic, providers of US and international merger and acquisition information, the annual value of announced mergers increased by over 580% between 1993 and the end of 2001, despite slowing since mid-2000.
This new strategy complements our existing US risk arbitrage and European risk arbitrage disciplines and affords us the opportunity to gain exposure to many compelling, quality arbitrage opportunities worldwide, said Jonathan Bean, Mellon HBV managing director.
This global strategy also offers investors another option to become more fully invested within the risk arbitrage area.
Mellon is aiming for high risk-adjusted returns of 2-3 times the average three-month T-bill rate by investing in a diversified portfolio that pass stringent risk control measures. A 10-strong investment team led by Cristina Suarez in New York and Daniel Harley in London will oversee the new activity.
Global arbitrage represents our continuing commitment to bring high quality alternative strategies to the institutional market, said Mellon vice chairman Ronald O'Hanley, president of Mellon Institutional Asset Management.
Headquartered in New York, Mellon HBV has combined assets under management in excess of US$520m in five disciplines - US risk arbitrage, European risk arbitrage, hedged distressed investing, global arbitrage and multi-strategy investing.
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