Dec. 5, 2002 — Pennsylvania Avenue Advisers LLC, a newly formed investment advisory firm, plans to launch a mutual fund that employs an arbitrage strategy.
The Pennsylvania Avenue Event-Driven Fund will seek growth by engaging in companies undergoing a corporate ‘event,’ according to an SEC filing dated November 22.
Specifically, the filing said the fund will focus on four particular investment strategies:
*Merger arbitrage: publicly announced mergers, takeovers, tender offers, and other corporate reorganizations;
*Capital structure arbitrage: different securities issued by the same issuer whose different securities are mispriced relative to each other;