Alpine Associates Management Inc. (“Alpine” or the “Firm”) manages the Alpine funds, which were founded in 1976 and have produced outstanding absolute returns. The Alpine funds have engaged in merger arbitrage and long/short equity trading since their inception. The firm’s investment strategies also include convertible arbitrage.

Merger Arbitrage

Alpine’s primary strategy is merger arbitrage, focusing on transactions with definitive merger contracts. Throughout the Firm’s history, arbitrage has never had a losing year.

Merger arbitrage is an extremely robust strategy that has been consistently profitable, exhibited low volatility, and benefited from rising interest rate environments.

Since the typical M&A transaction is completed in a few months, an arbitrage portfolio is constantly self-liquidating. As a result, arbitrage adjusts quickly to changes in the investment climate.

Merger arbitrage also includes event-driven situations, such as:

  • Stocks with activist investor-driven catalysts
  • Bidding wars
  • Hostile bids
  • Majority shareholder buyouts
  • Recapitalizations and partial tenders
  • Spin-offs and restructurings

Equity Trading

Alpine has engaged in equity trading since 1976.

The Firm’s trading business involves positions relating to merger transactions, where Alpine seeks to take advantage of market dislocations caused by mergers and other extraordinary corporate transactions and events.

From time to time Alpine may also engages in general equity trading, building on our arbitrage research together with technical and fundamental analysis.

Convertible Arbitrage

In the past, Alpine has also used a convertible arbitrage strategy, and may do so again in the future if conditions in financial markets make it attractive. Alpine’s convertible arbitrage strategy involves purchasing convertible bonds and preferred stocks and hedging these convertible securities with short positions in the underlying common stocks. Alpine seeks to generate income from the positive yield differential between a convertible security and its underlying common stock plus the rebate income produced from the short sale of the underlying common stock.