Swiss group GAM has hired an absolute return specialist to run a new merger arbitrage fund, Citywire Selector can reveal.
Due to launch later this month, subject to regulatory approval, new recruit Roberto Bottoli will focus the Ucits-compliant fund on unlocking inefficiencies in the market price of companies that may occur after the announcement of corporate events.
This could include mergers, acquisitions, spin-offs or other company specific news. In addition, the new fund will focus on low spreads and low risk deals.
In the approach, Bottoli will seek to manage risk by maintaining a suitable level of diversification across all of these different events. The fund uses a bottom-up stock selection process and allocations are driven by arbitrage opportunities in the market.
Bottoli joins the Swiss asset manager from German group Allianz Global Investors where he oversaw several funds, including the Allianz Merger Arbitrage Strategy. He joined Allianz in 1999 and has been responsible for absolute return and multi-asset portfolios since 2004.
Bottoli will be based in Lugano and work with Gianmarco Mondani, who is CIO of the non-directional equity team.
Commenting on the hire, Mondani said: ‘We continue to face the challenge of investing in a period of low growth and low yields. With the launch of this new event-driven fund, we are pleased to be able to offer our clients an attractive additional product that helps them diversify their portfolios away from traditional assets.’
The Ucits-compliant fund is currently pending regulatory approval. It is intended to be registered for sale in across Europe.