Episode 87 – Quarterly Liquid Alternatives Update
January 20, 2022

Episode 87 – Quarterly Liquid Alternatives Update

In this episode Geoff Scott, Senior Vice President, Investments, chats with Amar Pandya, Portfolio Manager of the Pender Alternative Arbitrage Fund and Justin Jacobsen, Portfolio Manager of the Pender Alternative Absolute Return Fund.

Subtitle: Key themes for the quarter, M&A, Merger arbitrage, Interest rates and Inflation.

In this episode Geoff Scott, Senior Vice President, Investments, chats with Amar Pandya, Portfolio Manager of the Pender Alternative Arbitrage Fund and Justin Jacobsen, Portfolio Manager of the Pender Alternative Absolute Return Fund. Together they look back on the last quarter, discuss merger arbitrage and provide some insight into volatility and the taper tantrum we have seen in early 2022. The team also discusses how the funds are being positioned to handle a variety of scenarios and Justin talks about using leverage in his fund. 

Key Takeaways

[01:20]Justin looks back on the last four months since the inception of the Pender Alternative Absolute Return Fund.
[02:51]Amar picks up the baton and talks about the Pender Alternative Arbitrage Fund since its inception in September 2021 and the backdrop for merger arbitrage.
[05:13]Geoff asks Justin for his assessment of volatility and the taper tantrum that we saw in early 2022, and how it compares to the taper tantrum of 2013.
[09:05]Given the conditions Geoff asks Justin how the fund is positioned to face the different scenarios that could unfold.
[10:25]Amar gives his current read on the M&A environment after such a robust 2021. Does he see this environment continuing into 2022?
[12:35]Does Justin have a view on how far or how high interest rates could go?
[15:00]Geoff asks Amar about the potential impact of higher interest rates and the inflationary environment on merger arbitrage.
[16:10]How does Justin use leverage in his fund?
[18:55]The book question.