Candriam Equities L Risk Arbitrage Opportunities

Investment Objective

Candriam Equities L Risk Arbitrage Opportunities is a UCITS Fund with absolute performance. The Fund implements arbitrage strategies on securities of companies in the European and North American markets that experience specific Special Situations (mergers, restructuring, etc). The Fund's objective is to outperform the capitalised €STR with an average volatility target of 4% to 6%, under normal market conditions. The investment horizon is 3 years. 

Reference Index

EONIA

Latest Meeting Note

Meeting 03 Feb 2022

The Candriam Risk Arbitrage team run a single strategy across two funds with different risk profiles. The overall strategy has c. €786m of AUM, managed by a stable investment team over 18 years. The two funds are the Candriam Risk Arbitr... Read more

The Candriam Risk Arbitrage team run a single strategy across two funds with different risk profiles. The overall strategy has c. €786m of AUM, managed by a stable investment team over 18 years. The two funds are the Candriam Risk Arbitrage fund and Candriam L Equities Risk Arbitrage Opportunities. The Risk Arbitrage fund invests in only announced M&A deals and targets +150/200bp over €STR, and is designed as a low volatility product. Whilst the Candriam L Equities Risk Arbitrage fund has a higher return seeking mandate and targets c. +400bp (above €STR) with a volatility of 4-6%. To achieve this, the fund predominantly still invests in officially announced M&A deals, but focuses on transactions with higher spreads, utilises more leverage and can include broader events eg. non-binding proposals and squeeze-out offers. The process evaluates announced M&A deals via their in-house deal rate methodology, which initially screens announced deals from developed countries through a liquidity filter to produce an investable universe. Quantitative and qualitative analysis is undertaken to evaluate deals based on identifiable risk factors, which helps to reduce failure rate and ultimately determine their respective potential. After the analysis, deals are given a score (A-C), with investment decisions influenced by the expected risk/reward, deal timing, deal type and comparison with similar positions already in the portfolio. The fund can run with a gross exposure up to 400%, though is typically below this, and usually has between 30-60 positions in the portfolio.

Performance

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
2021 0.1 0.7 0.4 0.6 0.8 0.6 0.4 0.3 0.4 0.9 0.8 0.7 0.5
2020 0.5 0.7 0.9 0.1 0.4 0.1 0.1 0.4 0.7 0.7 0.3 0.3 0.5

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Close Current Site Absolute Hedge is a market leading UCITS research database providing proprietary research on funds, themes and strategies in the UCITS space. Kepler Trust Intelligence is produced by the investment companies team at Kepler Partners and is the UK’s premier source of detailed qualitative research on investment trusts. Kepler Liquid Strategies is a Dublin domiciled UCITS fund platform featuring a number of best-of-breed fund managers. Kepler Partners is a corporate advisory and asset raising boutique specialising in the regulated funds market in Europe and investment trusts in the UK.