Mergers and Acquisitions funds

Comments

• Baseball_Fan

  November 28

  You might consider the stock JEF, Jeffries...I've done better than average with it lately...not a recommendation, pls do your own due diligence etc etc.
  
  Good Luck!
• Chinfist

  November 28

  Baseball_Fan said:

  You might consider the stock JEF, Jeffries...I've done better than average with it lately...not a recommendation, pls do your own due diligence etc etc.
  
  Good Luck!

  Thanks, that looks like a good suggestion. I’ll put it on my list.
  
• Chinfist

  November 28

  On further thought, it might be a good idea to invest in financials that are involved in M&A, like Goldman Sachs, Morgan Stanley, and Wells Fargo.
• JD_co

  November 28 edited November 28

  In the Event Driven category, HMEZX is most steady, but then you have lower expected returns (typcially 4% to 5% annually).
  
  EVDAX has a much higher SD, but higher overall returns expected.
• sma3

  November 28

  I always used either MERFX or ARBFX. They always claimed a steady ride, but both blew up in July 2021 when one heavy position blew up. I can't remember which.
  
  EMAYX far more volatile . I have never been able to tolerate Gabelli's self promotions and bombast. 82 funds there and only one rated 5 stars by M*. I think the SEC went after him a while back too.
  
  In his favor he signed "Giving Pledge" and is giving away most of his Billions.
• BaluBalu

  November 28 edited November 28

  If i want excitement not provided by passive equity funds or active equity funds (practicing some element of factor investing), then I try M&A investing on my own with individual stocks than buy one of these funds. Why waste capital on one of these funds?
  
  My M&A trades involve my expectations whether a company will be acquired or an announced transaction will fall through. But mostly it is entertainment for me as I do not make much difference to my portfolio (never large enough) but I have done better than many of these funds. The max I ever have is 5% of portfolio - Activision acq by MSFT. It is a needless entertainment, part of growing up as an investor, I tell myself.
  
  My current M&A play is CPRI. I had not checked M* fair value until now. It says $55 while current price is 23. My mental target has been $30-35. If no announcement of an impending acquisition by then, I bail. I might also bail anytime. Pl do your own DD.
  
  I personally think good investing is always boring.
• JD_co

  November 28

  Slightly different category, but "Kinetics Spin-off and Corp Restructuring Fund" (LSHAX) returned roughly 150% YTD for 2024. It holds a whopping 70% in 1 position - Texas Pacific Land Corp.
  
  Only has $54M in TTL Net Assets.
• BaluBalu

  November 28 edited November 28

  IMO, Corporate Restructuring is a painful area. Think about all the activist hedge funds and how many blow ups there have been. If any one is itching to entertain themselves with corporate restructuring investing, distress credit investing could be a fruitful one. If that is not enough entertainment, try out deep value equity fund investing. Or pick individual companies that have announced Corporate Restructuring but have not completed. There are many e.g., INTC, BA, KSS, DD, etc. My personal success rate in this category is at best 50%. In any case, try not to work for a company that is in the midst of a corporate restructuring - even as a consultant, it is a bit painful and of course, there are folks that spend their entire life as bankruptcy consultants/ lawyers. Some people are always drawn to a challenge!
• yogibearbull

  November 28

  Don't overlook bond managers who are active in corporate restructuring. Firms such as Pimco, Franklin Templeton, Oaktree, etc often get involved in restructuring. Much of Fido FAGIX 20.86% equity is from restructuring.
• hank

  November 28

  You might take a look at CMRGX which is about a year old. Not a recommendation. I have long invested in some of Calamos’ other funds. Generally they are a bit risk averse if that’s what you want. Won’t outperform in good markets.
• Chinfist

  December 1

  Thanks everybody for your input.
  I think many of those merger-arbitrage funds (MERFX, ARBFX, CMRGX, and HMEZX) are more like absolute return funds. I’m not opposed to those type of funds, but I don’t think they are what I’m looking for in this area. However, I might consider to add HMEZX to my portfolio. It looks pretty steady while being another diversifier from stocks and bond funds. I am definitely staying away from EMAYX. It does look volatile.
  
  I looked into LSHAX. I don’t know if I will invest in that fund, but I read the managers commentary and it lead me into some other ideas. I apologize, I’m going to go a little off-topic here, but one of the managers main themes is the demand for energy, and there will be a continued high demand. The managers mention AI and data centers will require large amounts of energy. This is likely the reason for the funds huge allocation to Texas Pacific Land Corparation, which is an oil play. I might consider looking into investing in midstream energy/energy infrastructure,
  
  I am thinking I might move away from the mergers and acquisitions theme and look for other opportunities. Thanks again for everyone’s recommendations and advice.
• Puddnhead

  December 1

  Hi Chinfist,
  
  Just saw your thread. I'm late, I know. Some thoughts on my short watchlist are: IDU, DTCR, and FPX. On a pullback or sector rotation, will look to buy.
  
  Like you, am looking for energy ETFs, mainly gas though.
  
  Happy holidays to you and the Board! Hope all is well.
  
  God bless
  the Pudd
  
• Anna

  December 1

  Chinfist said:

  
  I am thinking I might move away from the mergers and acquisitions theme and look for other opportunities. Thanks again for everyone’s recommendations and advice.

  And thanks to you. Could you keep us up with your thinking and deciding?
  
• Chinfist

  December 1

  Puddnhead said:

  Hi Chinfist,
  
  Just saw your thread. I'm late, I know. Some thoughts on my short watchlist are: IDU, DTCR, and FPX. On a pullback or sector rotation, will look to buy.
  
  Like you, am looking for energy ETFs, mainly gas though.
  
  Happy holidays to you and the Board! Hope all is well.
  
  God bless
  the Pudd
  

  Some are saying that IPOs could surge due to deregulation under Trump. FPX looks like an interesting choice. I’m not sure if the index it tracks can react quickly enough to obtain shares of IPOs near their infancies, but that ETF could be something to keep an eye on. Thanks for bringing it up. As far as energy, at the moment I’m considering MLPX. I hope you have a happy holiday also.
  
• Chinfist

  December 1 edited December 1

  Anna said:

  Chinfist said:

  
  I am thinking I might move away from the mergers and acquisitions theme and look for other opportunities. Thanks again for everyone’s recommendations and advice.

  And thanks to you. Could you keep us up with your thinking and deciding?
  

  I sure can.