Merger Arbitrage is a sophisticated investment strategy that capitalizes on the price difference between a target company's stock price in the market and the acquisition price during mergers and acquisitions. This non-directional strategy tends to have a low correlation with overall market direction and aims to provide potential stable returns with lower volatility. Incorporating Merger Arbitrage into a diversified portfolio may potentially achieve annual outperformance while helping to reduce overall portfolio risk.

In the current macroeconomic environment, which is characterized by inflation and geopolitical tensions, Merger Arbitrage, which benefits from the resurgence in M&A activity in 2025, presents a potential attractive opportunity for investors seeking diversification and returns. Download our expert insights to learn more about how merger arbitrage may enhance your investment portfolio.