Video: Interview with Westchester Capital Management – Part 1

In this video, DailyAlts publisher and editor Brian Haskin interviews Roy Behren and Michael Shannon of Westchester Capital Management. Their firm has $6 billion in assets under management, and it utilizes a variety of strategies in vehicles for both institutional and retail investors. Its chief strategy, however, is merger-arbitrage, and the firm also runs an event-driven fund, of which merger-arbitrage is a key component.

Although people commonly assume that merger-arbitrage is a “risky” strategy, their assumptions are wrong. Mr. Behren, a former prosecutor for the SEC, says Westchester’s portfolios have low standard deviations, a common assessment of risk; and Mr. Shannon explains that a lot of the firm’s growth came after 2008, when investors were looking for better ways of controlling risk within their portfolios. In addition, Mr. Behren says merger-arbitrage strategies should perform well under a rising-rate environment.

This video was filmed at the Investing in Liquid Alternatives conference held in New York City.

Click here for Part II or Part III of this video series. For a list of all the exclusive DailyAlts videos, click here.

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