• Protect & Grow Capital with M&A

    Alternative Arbitrage Investing at Pender

Investors are always looking for ways to diversify their portfolios with alternative assets and investment strategies that have a low correlation to traditional assets such as stocks and bonds, are tax advantaged, and can provide a predictable flow of income.

In today’s increasingly uncertain market environment, the average investor is seeking a solution to the drawbacks of a traditional balanced portfolio. Arbitrage strategies provide low correlation, tax advantages, and income replacement and thus may be a suitable addition to a well-diversified, balanced portfolio.

Benefits of Merger Arbitrage

  • Market neutral – consistent and steady absolute returns

  • Low risk – low volatility strategy with low drawdowns

  • Low correlation – low correlation with equity and bonds

  • Short duration – average deal duration is 3 to 5 months

  • Tax efficient – majority of returns are taxed as capital gains 

  • Interest rate hedge – return potential increases with rising rates

What is Merger Arbitrage?

A Merger Arbitrage opportunity is a type of investment that seeks to profit from the successful completion or a merger or acquisition by exploiting price discrepancies between the stock prices of the companies involved in such events. The goal of a Merger Arbitrage investment is to capture the difference in price, or spread, from when a merger is announced until it’s completed. Uncertainty can be reduced by investing in definitive agreements, not speculating on an acquisition.

Stages in the M&A Investment Process

Pender Alternative Arbitrage Fund

Amar Pandya, CFA

Portfolio Manager


Latest Commentary


Latest Factsheet


Latest Performance


  • Article

    Managing Manic Mr. Market With Merger Arbitrage Strategies

    May 29, 2023

  • Webinar

    Talking Low-Volatility Strategies in a Higher-Rate, Higher-Volatility World

    May 17, 2023
  • Media

    Regulatory risk is real for M&A—where is risk/return more attractive?

    May 17, 2023

  • Investor Education

    Who ordered take out? How investors can benefit from merger arbitrage strategies

    February 28, 2023
  • Investor Education

    How investors can benefit from Pender’s small cap ecosystem

    February 7, 2023

  • Investor Education

    Liquid Alternative Strategies: Benefits for a Diversified Portfolio

    December 22, 2022

  • Podcast

    PM Amar Pandya and the Pender Alternative Arbitrage Fund

    September 23, 2021

  • Article

    Better together? Challenges and opportunities in M&As

    September 20, 2022