Looking to generate low risk income?
Consider the Merger-Arbitrage strategy
from Constantia Capital.
Our expected annualized return is 4% above short term interest rates (which, as of 2Q 2021, remain near zero) after a flat fee of only 70 basis points by investing in this conservatively managed, post-announcement (no speculation), liquid alternative strategy. This is the same time-tested strategy employed by hedge funds, now available at a fraction of their fees and with no lockups. Simply open your own SIPC-insured account at your favorite discount broker ($110,000 minimum), assign trading authority to Constantia Capital, and get the benefit of your broker's low rates and our portfolio management expertise. Click here to request a detailed presentation.
Merger-Arb is an excellent strategy to diversify your fixed-income portfolio away from intermediate and long-term bond funds which are very susceptible to rising interest rates, and shorter term money market funds which earn negligible returns.
The Constantia Capital "Merger-Arb" strategy is a short duration, low volatility strategy that is designed as an high yielding alternative to cash in the bank or short-term debt. Volatility is similar to that of a U.S. Government 10-year Treasury Note.
This strategy invests in definitively announced mergers. We follow a highly disciplined process, and do not invest in speculative situations.
Performance
Since its inception in November 2011, Merger-Arbitrage has earned 5.4% annualized (net of fees) with a 0.95 Sharpe Ratio. See More Details About Merger-Arbitrage Performance
Risk Controls
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Investments in any corporation may not exceed 5%, at cost on the purchase date, of the outstanding shares of that corporation.
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Leverage may be used (for traditional accounts) but will not exceed 2.0.
¹ Discounted fees are available to accounts over $25 million.
² Performance Fee is charged on excess over benchmark, with high-water marks, and available only to qualified clients as defined by Rule 205-3 of the Investment Advisers Act of 1940 (17 CFR 275.205-3).