Universal Coal is in Play

Luke Cummings

Yesterday morning, Universal Coal (UNV.ASX) announced receipt of an indicative, non-binding acquisition proposal at $0.35 per share from Ata Resources Pty Ltd. Given the conditional non-binding nature of the bid, it is not quite yet the asymmetric arbitrage opportunity that we would normally trade with conviction. Somewhat fortunately for us... Show More

Could Fairfax Media See a Bidding War?

Luke Cummings

Regular readers of Livewire may recall some of our previous comments on Fairfax Media early last year, then subject to multiple private equity bids from both a TPG consortium and Hellman & Friedman. Last week, the market awoke to news of a Nine Entertainment (NEC.ASX) and Fairfax Media (FXJ.ASX) merger... Show More

M&A activity is heating up…

Luke Cummings

Following on from the recently announced takeover offers for Mantra Group Limited (MTR) and Property Group Limited (PLG) and so too the current tussle for control of Asia Pacific Data Centres (AJD), we thought it was worth revisiting what we look for when trading opportunities in the merger arbitrage space... Show More

Closing the door on Fairfax

Luke Cummings

Livewire readers may recall two previous articles that I wrote a few weeks back covering the details of the (then current) takeover approaches made to Fairfax Media by two private equity firms that were interested intaking Fairfax private. If not, you can find them here and here. Show More

Is your investment manager’s strategy sustainable (part two)?

Luke Cummings

Yesterday, in part one of this series, we discussed the importance of conducting due diligence on the strategy and process your investment manager. Apart from the initial investigative work, it also helps to know whether the manager is doing something genuinely different from others. After all, if your fund manager... Show More

Is your investment manager’s strategy sustainable (part one)?

Luke Cummings

Considering the strategy of an investment manager, which is essentially their investment approach and process, is a crucial element when assessing a fund manager, and one which is often underemphasised. While returns can and will fluctuate over time - and hence chasing past returns is a poor manager selection approach... Show More

Is it time to reconsider the 80:20 rule before it gets trumped?

Luke Cummings

Prudent portfolio management shouldn’t rely upon the assumption that everything will remain the same or that economic settings of the past will continue. Unfortunately, this is how many portfolios in Australia are typically managed. This is particularly dangerous when one considers that current economic settings are quite different to what... Show More

Merger Arb: The ‘right’ way and the ‘wrong’ way

Luke Cummings

At Harvest Lane, one of our core strategies involves taking a position in stocks that are subject to a takeover (also known as Merger Arb) and/or some other type of corporate activity. If the right opportunities are selected, this strategy produces limited downside volatility of returns, exhibits low correlation with... Show More

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