Low interest rates and high levels of corporate cash have led to an increased level of merger and acquisition (M&A) activity in 2014 versus prior years. Goldman Sachs reports, as noted in the table below, that both the dollar volume of activity as well as the number of deals in the first half of 2014 have both increased dramatically.
There are several alternative mutual funds that take advantage of both mergers and acquisitions. Morningstar’s fund analyst, A.J. D’Asaro, discusses some of those funds and how they work in the video below.