- A unique investment process enabling a 50% reduction in the market failure rate for M&A operations
- A tried-and-tested management process unchanged since 30/09/2008
- Investment solutions, adapted to the different investor profiles, with daily liquidity
- Over €400M under management
- A duo that has been working together for 21 years now
Complementarity of expertise
The management strategy governing the Candriam Risk Arbitrage fund consists in identifying M&A operations likely to succeed. The job of the management team is to avoid committing to operations where the risk of failure appears, to them, excessive.
On the one hand, a highly quantitative approach is applied to operations. Our proprietary database grants us access to the over 4500 mergers/acquisitions announced since 1998.
On the other hand, an expert eye identifies, from the legal documentation, any clauses and other items that could jeopardise the success of the deal.
Fabienne Cretin-Fumeron and Stéphane Dieudonné, with their double analysis, classify each operation according to 3 risk profiles and, together, construct a diversified portfolio based mainly on an analysis of the risk/return (upside potential vs risk of failure).
A good diversification tool
We only act on officially announced operations. Consequently, the price of the target company is no longer linked to its fundamentals but rather to the reality of the operation. That’s why the strategy is little correlated to the market and has historic volatility far lower than that of the market.