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Multiple Arbitrage |
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Multiple ArbitrageIn the context of hedge funds, a style of management where by the fund employs more than one arbitrage strategy. Portfolio manager opportunistically allocates capital among the various strategies in order to create the best risk/reward profile for the overall fund. Common strategies include merger arbitrage, convertible arbitrage, fixed income arbitrage, long/short equities pairs trading, and volatility arbitrage. In the context of equity and private equity investment, this refers to an investment in a firm where by standard multiples (earnings/price, book/price) indicate the price is far cheaper than industry averages.Multiple Arbitrage Similar MatchesRiskless arbitrageRiskless arbitrageThe simultaneous purchase and sale of the same asset to yield a profit. International arbitrageInternational arbitrageSimultaneous buying and selling of foreign securities and ADRs to capture the profit potential created by time, currency, and settlement inconsistencies that vary across international borders. ArbitrageArbitrageA combination of transactions designed to profit from an existing discrepancy among prices, exchange rates, and/or interest rates on different markets without risk of these changing. Simplest is simultaneous purchase and sale of the same thing in different markets, but more complex forms include triangular arbitrage and covered interest arbitrage. Arbitrage free option pricing modelsArbitrage free option pricing modelsYield curve option-pricing models. Reversal ArbitrageReversal ArbitrageA riskless arbitrage that involves selling the stock short, writing a put, and buying a call. The options have the same terms. Further SuggestionsArbitrage bondsIndex arbitrage Arbitrage Trading Program (ATP) Triangular arbitrage Triangular arbitrage Arbitrageur One-way arbitrage Locational arbitrage Currency arbitrage Structured arbitrage transaction Tax arbitrage Risk controlled arbitrage Covered interest arbitrage Covered interest arbitrage Merger Arbitrage arbitrage Discount Arbitrage Convertible Arbitrage arbitrageur Special arbitrage account conversion arbitrage |
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