First Trust Merger Arbitrage Fund

The First Trust Merger Arbitrage Fund is a distinct investment vehicle designed to offer investors exposure to the esoteric strategy of merger arbitrage. This fund primarily aims to capture the pricing inefficiencies that can occur when publicly announced mergers and acquisitions (M&A) are in progress. By investing in both the stocks of target companies and employing hedges in the acquirer's shares or derivatives, the fund seeks to profit from the successful completion of these corporate transactions. First Trust's fund participants gain access to a diversified portfolio of mergers, reducing idiosyncratic risk associated with individual deals. The fund operates across various sectors, providing indirect exposure to broader economic activities and corporate developments. Managed by a team of experts with a deep understanding of global M&A dynamics, they employ rigorous due diligence to evaluate the likelihood of deal completions while managing risk. As mergers can be less correlated with broader market movements, the First Trust Merger Arbitrage Fund serves a specialized role within the financial markets by providing an alternative strategy focused on generating returns through disciplined arbitrage practices.