Single manager hedge funds | Valuable trades

The current M&A environment remains very supportive and is benefiting from cyclical and structural forces that are driving corporate management teams and boards to pursue opportunities.

20 Nov 2018
  • The current M&A environment is supportive of merger arbitrage, while over the time the asset class has produced attractive risk-adjusted returns with low beta relative to the other asset classes irrespective of the macro environment for M&A.
  • Cyclical and structural forces are driving corporate management teams and boards to pursue acquisitions.
  • Going into 2019, we believe M&A deal flows will continue to be driven by strong structural and cyclical factors providing a robust investible opportunity set across a range of geographies and sectors.
  • The complex regulatory/political environment is likely to provide enhanced opportunities for dedicated merger arbitrage managers to continue to generate strong absolute and relative risk-adjusted returns going forward.

Canada Asset Management

Views and opinions expressed are presented for informational purposes only and are a reflection of UBS Asset Management’s best judgment at the time a report was compiled, and any obligation to update or alter forward-looking statement as a result of new information, future events, or otherwise is disclaimed. Commentary is provided at a macro level and is not with reference to any investment strategy, product or fund offered by UBS Asset Management and is provided in Canada generally pursuant to the registration exemption provided for in Section 8.25(2) of National Instrument 31-103 and in Ontario pursuant to Section 34 of the Securities Act (Ontario) and does not purport to be tailored to the needs of the person or company receiving the advice.. The information contained in the materials should not be considered a recommendation to purchase or sell any particular security. The materials and content provided will not constitute investment advice and should not be relied upon as the basis for investment decisions. As individual situations may differ, clients should seek independent professional tax, legal, accounting or other specialist advisors as to the legal and tax implication of investing. Plan fiduciaries should determine whether an investment program is prudent in light of a plan's own circumstances and overall portfolio. UBS Asset Management services offered to Canadian persons are provided by UBS Asset Management (Canada) Inc., a Nova Scotia corporation. UBS Asset Management (Canada) Inc. is an indirect wholly-owned subsidiary of UBS AG and is registered as a portfolio manager and exempt market dealer (in all provinces of Canada), commodity trading manager (Ontario), adviser – commodity futures (Manitoba) and investment fund manager (Ontario, Quebec and Newfoundland), all pursuant to Canadian securities law. Materials may include forward-looking statements. Actual future results, however, may prove to be different from expectations. Past performance is no guarantee of future results. Potential for profit is accompanied by possibility of loss.

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