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Context Capital Management and TQA Investors join forces to form billion-dollar hedge fund

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The US-based investment firms Context Capital Management, LLC and TQA Investors, LLC are combining to form Context/TQA Advisors.

The US-based investment firms Context Capital Management, LLC and TQA Investors, LLC are combining to form Context/TQA Advisors. The new entity, with over one billion dollars in assets, brings together two complementary investment teams with core capabilities in global convertible and capital structure arbitrage, fundamental credit analysis and event-driven strategies.

The transaction, planned to close later this summer, is expected to create a premier, relative-value driven investment firm. In the combined entity, the three managing principals will be Michael Rosen and Bill Fertig from Context Capital and Bob Butman from TQA Investors. Rosen will be Co-Chairman and CEO, and Fertig will be Co-Chairman and CIO. Butman will become President and focus on business development and client relationships. Context/TQA Advisors will employ over thirty dedicated professionals and will maintain its bi-coastal presence with offices in Stamford, Connecticut and San Diego, California.

‘We’re excited about this opportunity to create a broader and larger platform. With a stable investor base of over one billion dollars of assets, we expect our clients to see greater deal flow and additional investment opportunities,’ said Bill Fertig, Co-Chairman and CIO of Context Capital. ‘In today’s investment environment where larger firms increasingly attract the best investment opportunities and talent, a larger, stable asset base matters. I have known Bob for over twenty years, since our days of working together at Drexel Burnham when he headed the quantitative equity research group. He has built an excellent alternative investment track record over the past fifteen years, and we are delighted to join forces with Bob and his team.’

Bob Butman, President and CEO of TQA Investors, said: ‘I believe this opportunity represents the best of both worlds for our respective clients and employees. Two world-class convertible teams will combine to form a dynamic and global trading platform with both fundamental and quantitative expertise. This union will bring TQA’s and Context’s credit and special situation experts together under one roof with a strong research focus. I am confident that our investors will be pleased with our increased market presence, larger idea pool and more rigorous investment process.’

Michael Rosen, Co-Chairman and CEO of Context Capital added: ‘Since the inception of Context Capital in 2001, we have strived to reinforce our infrastructure and personnel in a deliberate and thoughtful manner to stay ahead of the curve. To that end, we believe the Context/TQA combination will allow us to continue our growth, provide additional investment opportunities, and better serve our institutional investors’ needs.’

Context Capital Management, LLC is an SEC-registered investment adviser based in San Diego, California and Greenwich, Connecticut. The firm was founded in 2001 by Michael S. Rosen and William D. Fertig to manage discretionary capital for institutional investors, endowments, family offices and high net worth individuals.

The firm specializes in arbitrage and relative-value strategies across both fixed
income and equity markets, including capital structure arbitrage, event-driven situations, fundamental credit and volatility arbitrage. Context has put together a team of specialized investment professionals with backgrounds in fundamental research, private equity, structured finance, investment banking, and volatility trading.

TQA Investors, LLC is an SEC-registered investment adviser based in Stamford, CT that specializes in relative value investing. Over the past fifteen years, TQA and its predecessor firm, Templeton Quantitative Advisors, have developed particular expertise in several complementary strategies including: global convertible arbitrage, relative value multi-strategy, long/short credit arbitrage, global merger/event arbitrage, long only convertibles, and U.S. long/short equity arbitrage.

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