Advantages

We encourage investors in the Merger-Arbitrage strategy to open their own separate account at a discount broker, and then assign trading authority to Constantia Capital. 


The advantages of owning your own account

  • You own the account—therefore only you can withdraw funds.

  • SIPC insured. (Securities Investor Protection Corporation)

  • Trading authority can be terminated by you at any time, without notice.

  • No lockups. Since you own the account, and the underlying investments are liquid equities that trade on public exchanges, cash is available on a "T+2" basis.

 

Low-margin rates, trading on foreign exchanges

  • The primary advantage of opening your Merger-Arbitrage account at Interactive Brokers is their low margin rates. As of March 31, 2020, Interactive Brokers’ highest US$ margin rate is only 1.55%, and goes down to as low as 0.75% annually. Most other reputable discount brokers charge significantly higher rates.

  • Since we take advantage of low margin rates to enhance returns, low rates are an integral component of the Merger-Arbitrage strategy’s success.

  • Foreign domiciled deals are typically between 10 and 20% of the Merger-Arbitrage portfolio and Interactive Brokers’ commission structure and trading platform is far superior to other online brokers.


Low commissions

  • Interactive Brokers charges extremely low commissions with a tiered structure charging only $0.0035 per share below a certain threshold, and only $0.002 above that threshold. 

  • We trade all of our client accounts together, and always in the same direction, therefore the commission charged to each client is allocated proportionally to each client, further reducing transaction costs and increasing net returns.

FAQ

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Asked

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PERFORMANCE

Find out more about Merger Arbitrage performance

ADVANTAGE

The advantages to investing with the Merger Arbitrage strategy

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Constantia Capital, LLC

17 Hendrickson Rd, Suite 100
Lawrenceville, NJ 08648

+1-609-512-1812

+1-609-947-3352

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Content © 2013-2020 Constantia Capital, LLC.  All rights reserved.  Registered in New Jersey, New York, and Pennsylvania.
Past performance is not a guarantee of future results.  Strategies involve risk of loss of principal.