Merger Arbitrage

Does anyone here do this? If so, how did you learn?

Check out the Merger Fund MERFX to play along at home.

There are some decent books out there to get you started, but nothing works as well as finding someone who is good at it to give you lessons.

can you reco some books JD?

I don’t do it, but from what I’ve seen the biggest asset is balls of steel…and knowing when to cut your losses just ask any SLM holder in the last 6 months about that

speaking of books joey, how is your derivatives book coming?

I worked in that area for a while and couldnt stand it. The best way to describe it is picking up nickels in front of a steamroller (not my quote, but a good one). A lot of guys got very wealthy in this area back in the day though. Dont think it works as a stand-alone strategy. I believe the book that i had was Risk Arbitrage, by Moore - its good for someone looking to get a taste. If you do a search amazon for risk arbitrage, M&A & HSR you should find lots. Understanding the M&A approval process is essential so anything discussing regulatory issues and HSR would be good.