The Arbitrage Credit Opportunities Fund, launched October 1, 2012, pursues an alternative credit-based strategy that seeks to generate returns from specific catalysts or company-specific events that are not correlated to overall market direction or interest rates. This non-traditional bond fund’s goal is to provide current income and capital growth by holding both outright long and short positions and by utilizing capital structure arbitrage, merger arbitrage, and convertible arbitrage techniques to exploit security mispricings or inefficiencies. Water Island Capital maintains a flexible approach toward credit quality, duration, and instrument type within this portfolio. The types of special situations, catalysts, and events we follow include: mergers and acquisitions, refinancings, debt maturities, regulatory changes, reorganizations, and restructurings. The investment team utilizes rigorous, bottom-up fundamental research and implements active hedging methodologies and risk controls, with a keen focus on downside risk. Our goal is to provide current income and capital growth with low volatility and low correlation. This portfolio offers a pure-play credit implementation of Water Island Capital’s broader event-driven style.
The Arbitrage Funds are distributed by ALPS Distributors Inc., which is not affiliated with the advisor or any of its affiliates.