M&A Boom Boosting Arbitrage and Event Driven Strategies

Event driven and arbitrage strategies are gaining steam due to the pick-up in M&A, says Steve Mason, portfolio manager for the Collins Alternative Solutions Fund. Mason says the low growth environment and high levels of cash on corporate balance sheets are forcing companies into acquisition mode to grow their top lines. He says they are running out of costs to cut to maintain their margins so they are shopping for other companies instead. Mason is also keeping duration as short as possible in his mutual fund – which is managed like a fund-of-funds - for fear of rising interest rates.