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DECALIA launches merger arbitrage fund with W Capital

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Investment management company DECALIA has launched a new merger arbitrage strategy which aims to generate an attractive absolute performance with low volatility, while remaining uncorrelated with conventional assets.

W Capital, a specialist in this strategy, will manage the fund which is aimed at qualified investors and is structured in the form of a Luxembourg Reserved Alternative Investment Fund (RAIF).
 
The merger arbitrage strategy aims at generating – under all market conditions – absolute returns with a low volatility and uncorrelated with conventional assets. The strategy involves taking advantage of price differentials in merger and acquisition events on listed companies. The fund’s very rigorous investment process focuses on the risk/return ratio of each transaction. The portfolio is highly diversified, with an average of 70 holdings, and focuses on already-announced merger operations, both friendly and hostile.
 
W Capital’s main fund manager, Gwénaël Le Carvennec, has more than 20 years’ experience in arbitrage strategies. For 10 years, he headed the technical arbitrage operation of Banque d’Orsay (taken over since by Oddo & Cie). W Capital’s strategy has established an excellent track record since 2010, with some very consistent results over the past seven years and low volatility. Furthermore it widely outperforms the HRFX Merger Arbitrage benchmark index.
 
“With this new fund, we continue to expand our range of alternative investment solutions uncorrelated with conventional asset classes, which also enables us to meet the needs of sophisticated clients such as family offices and institutional investors,” says Xavier Guillon (pictured), Partner and Head of DECALIA Funds.
 
“After many years, we have decided to open up our arbitrage strategy to external investors. Our meeting with the DECALIA teams convinced us that they were the right partner,” says Gwénaël Le Carvennec, Main Fund Manager and Head of Merger & Acquisitions Arbitrage at W Capital.

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