French hedge fund manager Bernheim, Dreyfus & Co. has appointed BofA Merrill Lynch as an additional prime broker for the Diva Synergy Fund and the Diva Synergy UCITS Fund.
The allocation of assets of the funds between BofA Merrill Lynch and, the current prime brokers and custodian of the funds, will be determined by the nature and type of transaction and at the discretion of Bernheim, Dreyfus & Co.
The functions which BofA Merrill Lynch performs under the agreement are the provision of financing and settlement services to the funds, regarding the purchase and sale of securities entered into by the funds, with either third parties or BofA Merrill Lynch.
Bernheim’s strategy aims to provide consistent low volatility returns with minimal correlation to market and peers by trading equity opportunities in Europe and North America. The Fund offers a unique and specialised methodology that focuses on compelling investment opportunities with definable, near term catalysts.
Over the last 36 months, the annualised return is a gain of +7.4% for the Diva Synergy Fund (volatility: 4.0%) and a gain of +18.8% for the Enhanced class (volatility: 12.0%). The UCITS version has returned +2.44% since inception in June 2011. Diva Synergy has the highest 3-year compound annualised return among merger arbitrage funds listed in BarclayHedge and Barron’s most recent listings.
The Diva Synergy team is very bullish for 2012 and expects M&A activity to pick up steadily. With more available financing, cash-rich corporations and private equity firms should start deploying capital in stronger capital markets. The team remains optimistic and confident in its ability to generate profits for its investors in the future. Bernheim, Dreyfus & Co. points out technology, industrials, natural resources and healthcare as sectors most likely to actively consolidate.
In addition, Bernheim, Dreyfus & Co is pleased to announce that Diva Synergy received Hedgeweek’s Best Absolute Return Fund award on March 2nd. Winning this prestigious award demonstrates Bernheim, Dreyfus & Co.’s dedication to consistent and positive returns for its investors as well as capital preservation in volatile markets.
Amit Shabi, CEO of Bernheim, Dreyfus & Co. says: “After analysing the different counterparties, we have decided to appoint BofA Merrill Lynch and are excited to start our business relationship with its renowned lending and operational crew as well as with its firstclass capital introduction team.”