About ARBFX
The Arbitrage Fund Class R is a mutual fund specializing in event-driven, merger arbitrage strategies. Its primary function is to seek capital appreciation by investing at least 80% of its net assets in equity securities of companies engaged in publicly announced corporate actions, such as mergers, tender offers, leveraged buyouts, spin-offs, liquidations, and other reorganizations. The fund's approach aims to capture the spread between the market price of a target company's stock and the price offered by the acquiring company, striving to generate consistent, absolute returns with lower volatility relative to broader equity markets. It maintains a diversified portfolio with exposure to both U.S. and foreign companies, and operates with a low correlation to traditional equity indices. The Arbitrage Fund Class R is categorized as an event-driven fund—meaning it focuses on securities whose valuation may change due to specific, atypical events impacting individual companies—making it a distinctive option for investors seeking exposure to alternative strategies that are less dependent on general market movements. Since its inception in 2000, the fund has provided access to merger arbitrage opportunities, filling a specialized role within the broader financial market landscape.
Fund Family Arbitrage Fund
Category Event Driven
Performance Rating Average
Risk Rating Below Average
Stock Exchange Nasdaq
Ticker Symbol ARBFX
Share Class Class R
Index ICE BofA US 3-Month T Bill TR IX
ARBFX had a total return of 5.87% in the past year, including dividends. Since the fund's
inception, the average annual return has been 3.89%.
