Schroders partners with Paulson for merger arbitrage fund

Schroders is to launch a merger-arbitrage strategy run by hedge fund veteran John Paulson.

Paulson (pictured), who made his name betting against subprime mortgages during the financial crisis, already runs a $1.7bn merger arbitrage strategy on which the Schroders fund will be based. The Schroder GAIA Paulson Merger Arbitrage fund will invest mainly in US, Western European and Canadian large cap public equities currently or potentially involved in mergers and other corporate events. The fund, which is subject to regulatory approval, is benchmark unconstrained and will target an annualised return of 8-10% net of fees, with expected volatility of 6-8%. "We are very pleased ...