How alternative investments can add to your portfolio
Beyond Markets
00:00
The Advantages of Arbitrage for Equity Long Traders
Relative value investor will try to identify assets that are mispriced so investors should be able to benefit from perceived marketing efficiencies. This is true for most opportunistic equity long short traders as they hatch out market or sector of factor risks via short positions in stocks or baskets of stocks. The beauty of this strategy is that the success and the volatility hinges on the deal closing and not on the market more generally. We see much less volatility in this strategy in a period where market volatility might be very high.
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