London Stock Exchange welcomes Gabelli Merger Plus+ Trust
The announcement of a merger is the beginning of an opportunity.
London Stock Exchange welcomed Gabelli Merger Plus+ Trust plc to open trading on the first day of dealings in the Company's shares following its successful admission to the Specialist Fund Segment of the Main Market.
"We are delighted to bring this new offering to the global market as a London listing. We have been investing in announced merger situations for nearly forty years and found the UK plc Investment Trust structure to be an advantageous vehicle for international investors to access our approach to traditional merger arbitrage,"
commented Marc Gabelli, Chairman of the Merger Plus+ Trust.
Merger investments are a highly liquid, non-market correlated, proven, and consistent alternative to traditional fixed income and equity securities. Increased broad market volatility enhances the opportunity to establish positions for the prospect of improved returns. Further, the outlook of rising rates would imply higher returns on mergers as spreads widen to compensate arbitrageurs.
Gabelli believes there is a compelling opportunity for investment in global merger and acquisition transactions utilising the firm's proprietary Private Market Value (PMV) with a CatalystTM approach,
"We continue to believe that a ‘Fifth Wave’ of M&A activity is underway in the US."
This methodology has its foundation in the principles first articulated in 1934 by the founders of modern security analysis, Benjamin Graham and David Dodd. The approach applies a holistic understanding of a company from the perspective of long-term ownership, coupled with clearly identified catalysts to realise returns in the marketplace. Mergers and acquisitions are a major driver in validating its PMV and a core capability of the firm in seeking absolute returns.
The Gabelli organisation was founded in 1977 and operates several publicly traded companies, including three investment management firms: Teton Advisors, a small cap specialist, Associated Capital Group, an alternative manager, and GAMCO, a value equity boutique. The Merger Plus+ Trust stands as the firm’s second LSE-listed investment trust, following the launch of the Gabelli Value Plus+ Trust (‘GVP’) in February 2015. It oversees approximately $45 billion of assets collectively. Within this, Gabelli manages fourteen NYSE-listed and now two LSE-listed closed-end funds with approximately $7.5 billion AUM, making it one of the largest equity closed-end managers in the US. With headquarters in New York, Gabelli opened a London research office in 2000 to service its global portfolio management activities.