Investment Strategy
The Berenberg Merger Arbitrage is an equity-based absolute return fund that pursues a specialised merger arbitrage strategy. The fund aims to achieve absolute returns while protecting investors' capital by exploiting price differences arising from publicly announced mergers, acquisitions, corporate restructurings or similar transactions. The fund aims to achieve long-term capital growth and outperform the money market (as measured by the €STR).
The fund's investment strategy aims to generate attractive absolute returns, regardless of general stock market performance. Due to its historically low correlation with traditional market indices, the fund offers investors diversification within the overall portfolio. Through broadly diversified investments in various M&A transactions, sectors and regions, the fund aims to achieve a stable risk/return profile with low volatility. The investment strategy aims to exploit inefficiencies in the pricing of company acquisitions and mergers and is based on the difference between the market price of a target company and the announced acquisition price.
Further details on the opportunities and risks of this fund can be found in the sales prospectus.
Monthly market comment
At the end of the month, 80% of the portfolio was allocated. With Morgan Stanley as the new synthetic prime broker, the fund now has access to the full investment spectrum – previously, only all-cash transactions were possible. The deal flow remains constructive: various new investable M&A transactions have been reported in recent weeks. An investment ratio of >90% is likely to be achieved in the near future. The portfolio comprises around 37 positions: 52% Europe, 44% North America (of which 33% USA), 4% APAC. The average deal duration is around four months; closings are expected by Q2 2026. The spreads offer an attractive risk premium. The focus is on fresh, selectively curated situations with clear logic – deliberately avoiding political and regulatory risk zones. The portfolio is >99% currency hedged. Significant positions: Verallia (acquisition by BWGI), Grupo Catalana Occidente (take-private by INOC), Takeaway.com (transaction with Prosus), Walgreens Boots Alliance (take-private by PE fund), CI Financial (acquisition by Brookfield Asset Management). The regulatory climate in the US is brightening – structural tailwind for merger arbitrage.
Portfolio Management

