LAB Merger Arbitrage Liquid Index

The LAB Merger Arbitrage Liquid Index is a factor within the LAB Event Driven Liquid Index. It is a rules-based trading strategy designed to reflect an investment approach common to hedge funds. The LAB Merger Arbitrage Liquid Index seeks to capture the spreads in merger or acquisition transactions involving public companies after the terms of the transaction have been announced. The spread is the difference between the transaction bid and the trading price. Typically, the target stock trades at a discount to the bid in order to account for the risk of the transaction failing to close. The LAB Merger Arbitrage Liquid Index is published daily.