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Approach

One of the many ways that SwissArb is able to offer differentiated opportunities is through our balanced approach to risk arbitrage and rights issue arbitrage.

These approaches are considered complementary in terms of risk characteristics and market behaviour. Our work focuses on analysing transaction structures, legal certainty and pricing dynamics, supported by disciplined exposure guidelines and robust analytical controls.

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Event driven /
Risk arbitrage trades

Merger arbitrage opportunities arise when a listed company is being bought by another company (listed or unlisted), private equity fund, etc.

Diversification across a broad range of arbitrage situations and careful transaction selection are key elements in limiting the impact of extreme events or individual transactions not materialising.

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200+
arbitrages

Event driven /
Risk arbitrage trades

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Hedged Rights
Issue Arbitrage

Rights issue arbitrage is a mechanical arbitrage between two related listed securities: an option right and its underlying share.

This framework allows the identification of pricing inefficiencies arising from temporary discounts or premiums between related securities.

While these situations are governed by contractual terms, they involve execution, financing and operational considerations which require careful analysis and disciplined risk controls.

Hedged Rights
Issue Arbitrage

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The SwissArb team works exhaustively in our search of worthwhile opportunities in the space. We consider all regions, transaction sizes, and asset types. This creates greater diversification, which in turn reduces risk - and we recognize the importance of prudent risk management in delivering robust and repeatable results. 

We apply a disciplined analytical process focused on legally binding transactions and maintain a high throughput of ideas and transaction analysis across the event-driven universe.

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Some of the opportunities we consider include corporate structure change.

Where we identify and analyse corporate events that may drive price movements and provide analytical insight into event-driven situations.

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Restructurings

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Recapitalizations

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M&A

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IPO

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Spinouts

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Delistings / relistings