Todd Pulvino, a co-founder of AQR’s arbitrage affiliate, CNH Partners, was asked to talk about the firm’s Diversified Arbitrage Strategy at meeting of retirement specialists in Merrill Lynch’s Global Wealth & Retirement Solutions division in Naples, Florida, on February 6.
As a tenured associate professor of finance at Northwestern University’s Kellogg School of Management, Pulvino had focused his research on the risks and returns in event arbitrage. He carried over that work when he founded CNH, and he still teaches at Kellogg.
The Diversified Arbitrage Strategy, he explained, invests both long and short in several types of corporate arbitrage opportunities, including merger arbitrage, convertible arbitrage, and corporate events and other arbitrage (closed-end fund discounts, dual-class spread arbitrage, distressed investments, etc.).