Vertex One Asset Management has launched a new fund called the Vertex Arbitrage Fund.
The Vertex Arbitrage Fund is suitable for individual investors and institutions seeking absolute returns with low monthly volatility.
A new type of product to the Canadian investment fund landscape, it provides an equity alternative to fixed income products with less interest rate risk. Focused on absolute returns, the fund provides lower risk than outright exposure to the equity markets by investing primarily in merger arbitrage.
Merger arbitrage involves capturing a profit from the discount between the market price and the "deal" price for a target company in an announced, legally-binding merger situation. Arbitrage returns historically increase as interest rates rise reducing the interest rate risk of the fund.
Additionally, with the majority of the return in the form of capital gains the fund will be a tax efficient investment vehicle.
The Vertex Arbitrage Fund joins Vertex One’s suite of funds: the Vertex Fund, Vertex Managed Value Portfolio, Vertex Enhanced Income Fund, Vertex Value Fund and Vertex Growth Fund.