Merger Arbitrage Risk

Northstar has risk models designed specifically for merger arbitrage strategies. Merger arbitrage and other event driven strategies are extremely popular within the hedge fund industry, but standard risk models, based only on historical data break down when faced with these strategies.

Our models combine deal parameters with an econometric framework to model the relationship between deal spreads and other risk factors. This allows us to accurately gauge the risk of individual deals, and at the same time calculate industry-standard risk statistics such as value at risk, factor exposures, and stress tests. For multi-strategy portfolios, this also allows us to accurately describe the relationship between your merger arbitrage positions and other securities in your portfolio. 

At Northstar, we provide a complete risk solution for merger arbitrage strategies.

For more information, or to schedule a demo, fill out our online form or e-mail us at info@northstarrisk.com.