PSigma's Abate predicts M&A boom in US

There will be a surge of M&A activity in the US this year as the economic recovery gathers pace, says PSigma's James Abate.

Abate, who runs PSigma's American Growth fund, says the number of M&A deals in the US last year bettered 2009 levels and are following the trend of 2002 to 2004. The manager says lower economic and interest rate volatility plus lower risk aversion will fuel a third consecutive year of strong US equity returns. "In 2011, M&A volume is likely to boom as companies search for top line growth as well as cost-cutting synergies from acquired assets. "In addition, several high profile growth companies such as LinkedIn, Skype, and Facebook will prepare to go public, contributing positively...