Multiple Arbitrage


 

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Multiple Arbitrage

In 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 Matches

Riskless arbitrage

Riskless arbitrage

The simultaneous purchase and sale of the same asset to yield a profit.


International arbitrage

International arbitrage

Simultaneous 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.


Arbitrage

Arbitrage

A 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 models

Arbitrage free option pricing models

Yield curve option-pricing models.


Reversal Arbitrage

Reversal Arbitrage

A riskless arbitrage that involves selling the stock short, writing a put, and buying a call. The options have the same terms.


Further Suggestions

Arbitrage bonds
Index 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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