MNA

MNA aims to generate returns through a passive strategy that represents the global merger arbitrage activity. The fund takes long positions in stocks that are reported targets of takeovers or acquisitions and other buyout-related transactions. The underlying index seeks to capitalize on the spread between the target company's current market stock price and the price of that stock received by the holder from the buyout transaction. Rather than directly shorting the acquiring name, the fund partially offsets long stakes with broad equity indexes. The resulting net long equity position should aid in keeping correlations low over a period of time, and the approach hopes to reduce expenses since it avoids 100% short positions.