The epitaph for merger arbitrage has been written more than once. For example, Arne Hassle, chief investment officer at Coronation Fund Managers, says: "Pure merger arbitrage is a strategy we doubts will ever re-emerge as a single strategy."
John Godden, managing director of HFR adds: "Merger arbitrage (M&A) has been deeply unpopular because the opportunity set has not been there. There was a comeback forecast for 2003, which didn't mature."
However, 2004 proved that merger arbitrage is not de