Geneva-based investment management company Decalia has expanded its range of funds with the launch of a merger arbitrage strategy.
This strategy aims at generating an attractive absolute performance with low volatility, while remaining uncorrelated with conventional assets. It will be managed by W Capital.
The new fund is aimed at qualified investors and is structured in the form of a Luxembourg Reserved Alternative Investment fund (RAIF).
The merger arbitrage strategy aims at generating – under all market conditions – absolute returns with a low volatility and uncorrelated with conventional assets. It involves taking advantage of price differentials in merger and acquisition events on listed companies.
Its investment process focuses on the risk/return ratio of each transaction. The portfolio is highly diversified, with an average of 70 holdings, and focuses on already-announced merger operations, both friendly and hostile.
Decalia has entrusted the management of this strategy to W Capital, an alternative management specialist belonging to a European family-owned group. The main fund manager, Gwénaël Le Carvennec, has more than 20 years’ experience in arbitrage strategies. For 10 years, he headed the technical arbitrage operation of Banque d’Orsay (taken over since by Oddo & Cie).