Relative Value Arbitrage     10

Relative Value Arbitrage Approaches

Convertible Arbitrage

Merger Arbitrage

Equity Statistical Arbitrage

Pairs Trading

Fixed-Income Arbitrage

Options and Warrants Trading

Capital Structure Arbitrage

Regulation D (Structured Discount Convertible) Arbitrage

Risks and Risk Control

Strategy Mix

Strategy Weightings

Source of Return

Growth and Recent Developments in Relative Value Arbitrage

Relative value arbitrage managers are usually practitioners of multiple investment strategies. Their overall emphasis is on making “spread trades,” which derive returns from the relationship between two related securities rather than from the direction of the market. Generally, relative value arbitrageurs take offsetting long and short ...

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