Our current strategies
Systematic Risk Arb
Our Systematic Risk Arbitrage strategy – also known as “Merger Arbitrage” – was established under the premise that this type of investing may offer excess returns that can be isolated based on certain M&A deal characteristics, including geography, market capitalization, and transaction and deal type.
We believe that by systematizing this strategy to refine deal selection and to manage strategy risk, we may be able to harness the associated premia more effectively.
Systematic Convertible Arb
Our Systematic Convertible Arbitrage strategy seeks to buy “long” a convertible security and sell “short” a portion of the underlying stock into which the convertible security may be exercised, in instances where our models measure the security to be theoretically cheap and relatively mispriced. The strategy may also seek to hedge a portion of the interest rate risk.
Equity Statistical Arb
Our Equity Statistical Arbitrage strategy seeks to capture liquidity risk premia typically associated with the tendency for equity prices to revert to the mean from short-term dislocations that may not be associated with a change in fundamentals. Mean reversion strategies typically look to monetize opportunities created by short-term market overreactions.
Our Systematic SPAC strategy seeks to efficiently capture potential excess returns associated with SPAC investing while retaining much of the downside protection inherent to the structure. The strategy utilizes a rules-based framework that builds upon Magnetar’s active SPAC investment management experience and deep relationships with underwriters and certain sponsor teams. The strategy also may seek to hedge a portion of the equity market beta.