Episode 25: Mergers, Milestones, and Momentum - AltShares Merger Arbitrage ETF Celebrates Five Strong Years
In this episode, Portfolio Managers Eric Becker and Chris Plunkett discuss how AltShares Merger Arbitrage ETF has delivered differentiated returns since inception and why regulatory changes have created a favorable environment for mergers and acquisitions.
[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. Certain securities which were not, or are no longer, held in the Fund’s portfolio may be discussed for informational purposes only. 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. Visit the glossary for definitions of terms.
AltShares Trust
Investors should carefully consider the fund’s investment objectives, risks, and expenses before investing. To obtain a prospectus or summary prospectus containing this and other important information, visit http://altsharesetfs.com or call (855) 955-1607. Read the prospectus carefully before investing. Investing involves risk, including potential loss of principal.
Performance through 6/30/25: AltShares Merger Arbitrage ETF (at NAV), 6.80% (one year), 4.79% (five year), 4.16% (since inception); AltShares Merger Arbitrage ETF (at Market Price), 6.92% (one year), 4.74% (five year), 4.16% (since inception); S&P 500 Total Return Index, 15.16% (one year), 16.64% (five year), 13.65% (ten year); Bloomberg US Aggregate Bond Total Return Index, 6.08% (one year), -0.73% (five year), 1.76% (ten year). Performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, visit https://altsharesetfs.com or call (855) 955-1607. Returns shown above include the reinvestment of all dividends and capital gains. Returns greater than one year are annualized. Total Annual Fund Operating Expense for the fund is 0.84%. Performance reflects fee the impact of fee waivers. Without fee waivers, returns would have been lower. The Adviser has voluntarily agreed to reduce the fund’s advisory fee from 0.75% to 0.55% when the fund’s assets are under $100 million and to 0.65% when the fund’s assets are $100 million or more but less than $200 million. This voluntary arrangement may be eliminated by the Adviser at any time. A contractual fee waiver of 0.20% was previously in effect from January 31, 2022, to September 30, 2022.
Since inception return period begins May 7, 2020. Net asset value (NAV) represents the value of each share's portion of the fund's underlying net assets (including cash) at the end of the trading day. Market price represents the mid-point between the highest bid and the lowest offer on the listing exchange, as of the time that the fund’s NAV is calculated (usually 4:00 pm Eastern time).
The AltShares Merger Arbitrage ETF is a non-diversified, passively managed ETF which seeks to provide investment results that correspond, before fees and expenses, to the performance of the Water Island Merger Arbitrage USD Hedged Index. The Index is designed to reflect a pure-play, global merger arbitrage strategy investing in definitive, publicly announced mergers and acquisitions. The Index is created and sponsored by Water Island Indices, LLC, an affiliate of Water Island Capital, LLC. For additional information on the Index, please visit https://waterislandcapital.com/indices. Indexes are unmanaged and one cannot invest directly in an index.
RISKS: Investments are subject to risk, including possible loss of principal. There can be no assurance that the fund will achieve its investment objectives. The fund uses investment techniques and strategies with risks that are different from the risks ordinarily associated with equity investments. Such risks include merger arbitrage risk (in that the proposed reorganizations in which the fund invests may be renegotiated or terminated, in which case the fund may realize losses); passive investment risk; short sale risk; market risk; high portfolio turnover risk (which may increase the fund’s brokerage costs, which would reduce performance); hedging risk; concentration risk; sector risk; equity risk; derivatives risk; swap risk; foreign securities risk; currency risk; counterparty risk; ETF risks (which include premium-discount risk, secondary market trading risk, cash transactions risk, international closed market trading risk, flash crash risk, and authorized participants concentration risk); small and medium capitalization securities risk; investment company and ETF risk; non-diversification risk; tracking error risk; and large shareholder risk. Risks may increase volatility, increase costs, and lower performance.
The S&P 500 Total Return Index (“S&P 500”) is an index of U.S. equities meant to reflect the risk/return characteristics of the large cap universe, and is one of the most commonly used benchmarks for the overall U.S. stock market. The Bloomberg U.S. Aggregate Bond Total Return Index (“Bloomberg Agg”) covers the U.S. investment grade fixed rate bond market. Indexes are unmanaged and one cannot invest directly in an index. Indexes are shown for informational purposes only and are not intended to, and do not, parallel the risk or investment style of the fund’s investment strategy.
Distributed by Foreside Financial Services, LLC, which is not affiliated with Water Island Capital, LLC or any of its affiliates.
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 or summary 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.
RISKS: Investments are subject to risk, including possible loss of principal. There can be no assurance that the fund will achieve its investment objectives. The fund uses investment techniques and strategies with risks that are different from the risks ordinarily associated with equity investments. Such risks include merger arbitrage risk (in that the proposed reorganizations in which the fund invests may be renegotiated or terminated, in which case the fund may realize losses); short sale risk; active management risk; concentration risk; high portfolio turnover risk (which may increase the fund’s brokerage costs, which would reduce performance); foreign securities risk; market risk; sector risk; derivatives risk; hedging transaction risk; counterparty risk; temporary investment/cash management risk; swap risk; options risk; liquidity risk; investment company and ETF risk; leverage risk; small and medium capitalization securities risk; and currency risk. Risks may increase volatility, increase costs, and lower performance.
The Arbitrage Funds are distributed by ALPS Distributors Inc., which is not affiliated with Water Island Capital, LLC or any of its affiliates.