Meant to say "The case FOR..." (nmt)

Posted by Fundmentals on November 06, 2009 at 14:30:08:

In Reply to: The case of arbitrage/merger funds (ARBFX, MERFX) (lip) posted by Fundmentals on November 06, 2009 at 14:29:09:

: I recently added some allocation to ARBFX and MERFX in my conservative taxable portfolio as low volatility, reasonably (but not entirely) major market uncorrelated funds.

: The linked article on the Buffett takeover of Burlington Northern shows how these funds (or funds also using this strategy) make money.

: A slow recovery with a raising market is a good environment for a lot of takeovers and mergers as the winners gobble up losers of the recession as organic growth is limited.

: These funds are not to be confused with some exotic hedge-fund arbitrage strategy and will not be very flashy but will reduce the volatility of a portfolio (like bond funds) with potential for equity like gains.

Follow Ups:

• Thank you both for a pleasant & informative discussion about this area (eom) catch22 18:10:58 11/06/09 (0)

Post a Followup

Name:
Password (everyone use: 56789)
Subject:
Comments:	: : I recently added some allocation to ARBFX and MERFX in my conservative taxable portfolio as low volatility, reasonably (but not entirely) major market uncorrelated funds. : : The linked article on the Buffett takeover of Burlington Northern shows how these funds (or funds also using this strategy) make money. : : A slow recovery with a raising market is a good environment for a lot of takeovers and mergers as the winners gobble up losers of the recession as organic growth is limited. : : These funds are not to be confused with some exotic hedge-fund arbitrage strategy and will not be very flashy but will reduce the volatility of a portfolio (like bond funds) with potential for equity like gains.
URL Title (optional):
URL (optional):