26 Nov 2011
The recovery of the M&A market as shown by the recent Google/Motorola, Gilead/Pharmasset and Kinder Morgan/El Paso transactions has kick started potential investment opportunities, according to Bernheim Dreyfus & Co. This comes as the firm celebrates the fifth anniversary of its flagship event driven fund, Diva Synergy.
Amit Shabi, partner at Blenheim Dreyfus, said: “We are now at the early stage of a new M&A cycle, which will create many investment opportunities for our strategy. Our fund remains committed to giving investors access to a sophisticated strategy, focused on mergers and acquisitions, while offering them liquidity and transparency.”
The Diva Synergy fund aims for long-term capital appreciation associated with a protection against market risk and uses Merger arbitage and special situations as sub-strategies to deploy capital. Since inception, the fund has returned 23.2% to investors. A UCITS version of the fund was launched in June 2011 which targets European investors.
Bernheim Dreyfus predict that the financial health of global corporates (lower cost base, profits and cash-flows generation, and deleveraged and cash-rich balance sheets), reasonable valuations and the need to find growth should drive the pace of the recovery of the M&A market higher, once macroeconomic concerns (global growth, sovereign debt levels, and monetary dynamics) are reduced.
This recovery of the M&A market represents an important and diversified set of potential investment opportunities going forward.
Shabi said: “In such an investment strategy, where the length of the track record is key in evaluation of a manager’s skill, we are particularly proud of the work done over these five years, during which our original money management approach has shown its ability to generate absolute performances, regardless of market conditions.”
Amit Shabi, partner at Blenheim Dreyfus, said: “We are now at the early stage of a new M&A cycle, which will create many investment opportunities for our strategy. Our fund remains committed to giving investors access to a sophisticated strategy, focused on mergers and acquisitions, while offering them liquidity and transparency.”
The Diva Synergy fund aims for long-term capital appreciation associated with a protection against market risk and uses Merger arbitage and special situations as sub-strategies to deploy capital. Since inception, the fund has returned 23.2% to investors. A UCITS version of the fund was launched in June 2011 which targets European investors.
Bernheim Dreyfus predict that the financial health of global corporates (lower cost base, profits and cash-flows generation, and deleveraged and cash-rich balance sheets), reasonable valuations and the need to find growth should drive the pace of the recovery of the M&A market higher, once macroeconomic concerns (global growth, sovereign debt levels, and monetary dynamics) are reduced.
This recovery of the M&A market represents an important and diversified set of potential investment opportunities going forward.
Shabi said: “In such an investment strategy, where the length of the track record is key in evaluation of a manager’s skill, we are particularly proud of the work done over these five years, during which our original money management approach has shown its ability to generate absolute performances, regardless of market conditions.”
