Barclays has teamed up with Amundi Investment Solutions to launch a fund providing exposure to US takeovers.
The UCITS-structured Dublin-domiciled fund aims to buy stocks targeted by an acquirer after a takeover approach has been announced. The aim of the strategy is to buy stocks as soon as deals are announced, in order to capture the difference between the current share price and the takeover price. Only US-listed M&A deals larger than $500m will be invested in, with Amundi - the manager of the fund - also hedging out volatility using S&P 500 futures in order to keep the portfolio market neutral. Lisa Chaudhuri, from Barclays UK Investor Solutions said: "As a result of the financial cri...
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