Merger Arbitrage Hedge Strategy

Merger Arbitrage Hedge Strategy

by Richard C. Wilson & Family Offices Group Association Team

Family Office Definition: Merger Arbitrage Hedge Strategy

Merger Arbitrage Hedge Strategy definition:  Merger arbitrage is an event-driven hedging strategy which involves buying long and selling short the stocks of companies involved in merger and acquisition deals.  The targeted companies are bought long when trading below the acquisition price. The acquiring company is sold short before the price drops to reflect the amount paid for the deal. If the deal is not completed for any reason or is disapproved of, prices can move in the wrong direction on either side of the transaction and negatively impact performance.

Download our free Family Office Report to learn more about the family office industry.

Read more Family Office Definitions

Tags: What is merger arbitrage hedge strategy?, merger arbitrage hedge strategy definition, merger arbitrage hedge strategy family office, merger arbitrage hedge strategy term, define merger arbitrage hedge strategy, merger arbitrage hedge strategy wealth management, merger arbitrage hedge strategy multi-family office, merger arbitrage hedge strategy single family office

Leave Your Response

* Name, Email, Comment are Required

We run the Family Offices Group, the #1 largest family office association with 84,000+ global members. We offer live events, a bestselling book, Webinars, a family office database, and a family office training & certificate program called the Qualified Family Office Professional (QFOP). To get to know us please watch this 2 minute video, and contact us any time during pacific business hours by calling (212) 729-5067 or emailing us at

Free Family Office Report (PDF)

Contact Details for 1,000 Family Offices in Excel