Thank you both for a pleasant & informative discussion about this area (eom)

Posted by catch22 on November 06, 2009 at 18:10:58:

In Reply to: Meant to say "The case FOR..." (nmt) posted by Fundmentals on November 06, 2009 at 14:30:08:

: : 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.

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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.
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