Corre: Multi-Manager Pods Have Compressed Friendly Merger Arbitrage Spreads
Isaac Corre · Isaac Corre – Event-Driven Investing at Governors Lane (EP.344) · Oct 16, 2023 · at 35:10
Isaac Corre, founder of event-driven hedge fund Governors Lane, discusses how multi-manager multi-strategy hedge funds have transformed competitive dynamics in merger arbitrage.
0:00 / 0:28exact quote · 28.8s
720p mp4 · rendered on demand · StarZero watermark
“The pod shops in merger arbitrage have become a very, very important player. Some of them do some amount of event-driven equities, but I think it's much, much more constrained because of the market neutrality that they run. But I think the biggest impact, I would say, is in merger arbitrage, and I think that part of the reason spreads are as tight as they are is because the pods really do have very, very dedicated effort to that, and they've done a very, very good job, but it makes it somewhat less interesting for us, at least with the safer, friendly deals.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Isaac Corre
Corre: UK CMA was doing US bidding on Activision deal before reversing
“I think in hindsight, we recognize now that there was more dialogue between the U.S. And the U.K. Than we had appreciated, and they were probably doing the U.S.'s bidding in a certain way, which is Surprising, but then they really reversed course when the U.S.…”
Corre: M&A Deal Flow Will Rebound as Regulators Back Off Extreme Positions
“I'm actually pretty optimistic now that the administration seems to be pivoting away from some of these more extreme positions. They basically folded on Activision. They folded on Horizon. I'm pretty optimistic that once the corporates get the message that it'…”
Corre: Hedge funds hiring Rhodes Scholars signals a broken U.S. economy
“There's something wrong with the U.S. Economy if Rhodes Scholars are coming to work at a hedge fund”
Corre: Biden Administration Has Mostly Failed in Merger Antitrust Challenges
“Generally speaking, the administration has not been successful in those challenges.”