We endeavor to construct an Equity Arbitrage portfolio with flexible delta positioning in accordance with our views on the underlying assets, implementing directional bets with downside protection strategies in place.
Our intention is to capitalize on pricing inefficiencies, realizing profits from the divergence between the implied volatilities and expected volatilities. We also aim to participate in deals that offer arbitrage opportunities.
Invest in Business Momentum (re-rating) and/or Earnings Momentum (earnings growth). Participate in bargain-hunting (IPOs, block deals) and take advantage of capital flows (Index rebalancing).
Flow-driven price appreciation without fundamental support can become a short candidate (Over-owned). High total yield with stable earnings growth (7% or above), paired with a strong Shareholder Policy.
Invest in private deals focused on financial stability and profitability, leveraging our vast network and extensive experience with major institutions across Asset Management, Venture Capital, Investment Banking, and Private Equity.
Initial investments are instituted by structuring deals that typically allow for an active, short-term exit within 1 to 2 years, with liquidity achieved through secondary sales and block deals.
Equity Arbitrage exploits market inefficiencies in both market conditions, with flexible positioning based on market outlook for consistent returns.
Equity fundamentals historically perform well in bull markets by focusing on business momentum and earnings growth, but may incur losses in bear markets, despite opportunities for shorting.
Private Deals excel in bull markets through pre-IPO and structured debt investments while providing downside protection in bear markets through secured investments.
