A hedge fund that focuses on earning returns from mergers, spin-offs, and takeovers would be most accurately placed in which style category? A. Equity market neutral. B. Hedged equity. C. Merger arbitrage. D. Global macro.
Merger arbitrage focuses on returns from mergers, spin-offs, takeovers, etc... For example, if company X announces it will acquire company Y, the manager might buy shares in Y and short X.
