Magnum in arbitrage fund move

Professional Adviser
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Magnum is set to sponsor a market neutral arbitrage fund, the Ascendant Offshore fund run by David J...

Magnum is set to sponsor a market neutral arbitrage fund, the Ascendant Offshore fund run by David Jarvis and Rick Kung. The fund focuses on arbitrage opportunities in Canada and the US. Its strategy is primarily based on merger arbitrage. This involves taking advantage of pricing inefficiencies that occur when two companies announce a merger deal. Anticipating the convergence of stock prices as the deal nears completion, the process typically involves shorting the stock of the acquiring company and buying the stock of the target company. Jarvis said: 'Every arbitrage transaction is sys...

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