Episode 15: AltShares Merger Arbitrage ETF's One-Year Anniversary

In this special episode, Portfolio Managers Eric Becker and Chris Plunkett highlight the first year of the AltShares Merger Arbitrage ETF and detail how the Fund’s unique investment approach helped them navigate historic bouts of volatility. They also discuss some exciting developments on the horizon.
[Transcript]

The discussion of market trends and companies throughout this podcast are not intended as advice to any person regarding the advisability of investing in any particular security or strategy. Any securities mentioned are selected for discussion purposes only and may not represent current holdings of Water Island Capital, LLC ("Water Island") or The Arbitrage Funds. Our views, opinions, and estimates – including any forward-looking statements – are a reflection of our best judgment at the time of recording and are subject to change based on market and other conditions. Water Island is under no obligation to update or revise any such views or statements, except as required by law. Past performance is no guarantee of future results. Additional information about Water Island can be obtained from our Form ADV, which is available at adviserinfo.sec.gov. View top ten holdings. Visit the glossary for definitions of terms.

Arbitrage Funds

An investor should consider the investment objectives, risks, charges, and expenses of the funds carefully before investing. The current prospectus contains this and other information about the funds. To obtain a prospectus, please visit https://arbitragefunds.com/ or call (800) 295-4485. Please read the prospectus carefully before investing. Investing involves risk, including potential loss of principal.

The discussion of market trends and companies throughout this podcast are not intended as advice to any person regarding the advisability of investing in any particular security or strategy. Any securities mentioned are selected for discussion purposes only and may not represent current holdings of Water Island Capital, LLC ("Water Island") or The Arbitrage Funds. Our views, opinions, and estimates – including any forward-looking statements – are a reflection of our best judgment at the time of recording and are subject to change based on market and other conditions. Water Island is under no obligation to update or revise any such views or statements, except as required by law. Past performance is no guarantee of future results. Additional information about Water Island can be obtained from our Form ADV, which is available at https://adviserinfo.sec.gov. Please visit https://arbitragefunds.com/glossary for definitions of terms.

RISKS: The Funds use investment techniques and strategies with risks that are different from the risks ordinarily associated with equity and credit investments. Such risks include merger arbitrage risk (in that the proposed reorganizations in which the Funds invest may be renegotiated or terminated, in which case the Funds may realize losses); short sale risk (in that the Funds will suffer a loss if it sells a security short and the value of the security rises rather than falls); event-driven risk; special situations risk; market risk; sector risk; hedging transaction risk; derivatives risk; LIBOR rate risk; credit risk; convertible security risk; concentration risk; special purpose acquisition companies risk; non-diversification risk; active management risk; counterparty risk; high portfolio turnover risk (which may increase the Funds’ brokerage costs, which would reduce performance); interest rate risk; liquidity risk; options risk; swap risk; small and medium capitalization securities risk; investment company and ETF risk; when-issued securities risk; large shareholder transaction risk; foreign securities risk (in that the securities of foreign issuers may be less liquid and more volatile than securities of comparable US issuers, and may be subject to political uncertainty and currency fluctuations); leverage risk; currency risk; and temporary investment/cash management risk. Risks may increase volatility and may increase costs and lower performance.

The Arbitrage Funds are distributed by ALPS Distributors Inc., which is not affiliated with the advisor or any of its affiliates.

AltShares

Information contained herein is subject to completion or amendment. A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This communication shall not constitute an offer to buy or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under securities laws of any such state.

An indication of interest in response to this advertisement will involve no obligation or commitment of any kind.

Brokerage commissions may apply and will reduce returns.

​RISKS:  Investments are subject to risk, including possible loss of principal. The Fund is new and there can be no assurance that the Fund will achieve its investment objectives. The Fund is non-diversified and is expected to be concentrated in certain industries and sectors as the underlying index and may be more sensitive to market or other developments that significantly affect those industries.

​The Fund uses investment techniques with risks that are different from those ordinarily associated with equity investments. Such risks include merger arbitrage risk (in that the proposed reorganizations in which the Fund invests maybe renegotiated or terminated, in which case the Fund may realize losses) and short sale risk (in that the Fund will suffer a loss if it sells a security short and the value of the security rises rather than falls).  Short sales by a Fund theoretically involve unlimited loss potential since the market price of securities sold short may continuously increase.

 The Fund may invest in derivatives (such as forwards, futures including foreign forward currency contracts, options and swaps), which may cause the Fund to be susceptible to credit risk and currency fluctuations.  Derivatives may be more sensitive to changes in market conditions and may amplify the risk of loss for the Fund.  The Fund may experience high portfolio turnover which could result in higher transaction costs and taxes.

​Shares of the Fund may be bought or sold throughout the day at their market price on the exchange on which they are listed. The market price of Fund shares may be at, above, or below their net asset value ("NAV") and will fluctuate with changes in the NAV as well as with supply and demand in the market for the shares. The market price of Fund shares may differ significantly from their NAV during periods of market volatility. Shares of the Fund may only be redeemed directly with the Fund at NAV by Authorized Participants, in large creation units. There can be no guarantee that an active trading market for Fund shares will develop or be maintained or that their listing will continue or remain unchanged. Buying or selling Fund shares on an exchange may require the payment of brokerage commissions and frequent trading may incur brokerage costs that detract significantly from investment returns.

Before investing, carefully consider the Fund’s investment objectives, risks, and charges and expenses. The Fund’s prospectus contains this and other important information. To obtain a copy of the current prospectus please visit altsharesetfs.com. Read the prospectus carefully before you invest.

Distributed by Foreside Financial Services, LLC. Advised by Water Island Capital, LLC.