NEW YORK (HedgeWorld.com)–Taking advantage of opportunities created by economic and market uncertainty, Mellon Financial Corp.’s HBV Alternative Strategies subsidiary has started U.S. special situations and European event-driven portfolios.
The strategies seek to profit from corporate events such as mergers, corporate restructurings, liquidations, bankruptcies, reorganizations and government divestitures. According to Mellon HBV Managing Director Jonathan Bean, these new disciplines are an extension of the firm’s core investment management capabilities and show promise in today’s markets.
“Companies are looking to restructure and create shareholder value, while lower equities prices have left many cash-rich companies trading at low valuations and subject to takeover,” he explained, in a statement.
A New York investment team led by Michael Hawthorne will manage the U.S. special situations vehicle. They plan to maintain a highly diversified portfolio and target 25 to 35 investments at any one time. Their mandate is to invest in the United States and Canada, with a focus on spinoffs, corporate governance events, intra-capital arbitrage, hostile takeovers, pre-announced mergers, announced restructurings and pre/post bankruptcy situations.
Daniel Harley will head the European event-driven group. This London-based team will target 35 to 45 deals at a time for a diversified portfolio that may include merger arbitrage, non-distressed corporate restructurings and distressed situations. William “Mickey” Harley, president and chief executive of Mellon HBV, will oversee both strategies.
Mellon HBV has US$675 million in combined assets under management in three broad event-driven styles, namely risk arbitrage, hedged distressed and event-driven/special situations, as well as a multi-strategy pool that includes all three. The U.S. and European portfolios are available as stand-alone investments or as part of the multi-strategy fund.
The firm’s parent Previous HedgeWorld Story, Mellon Financial Corp., headquartered in Pittsburgh, has US$566 billion under management.