Merger Masters presents revealing profiles of monumentally successful merger investors based on exclusive interviews with some of the greatest minds to practice the art of arbitrage. Michael Price, John Paulson, Paul Singer, and others offer practical perspectives on how their backgrounds in the risk-conscious world of merger arbitrage helped them make their biggest deals. They share their insights on the discipline that underlies their fortunes, whether they practice the “plain vanilla” strategy of announced deals, the aggressive strategy of activist investment, or any strategy in between on the risk spectrum.
Merger Masters delves into the human side of risk arbitrage, exploring how top practitioners deal with the behavioral aspects of generating consistent profits from risk arbitrage. The book also includes perspectives from the other side of the mergers and acquisitions divide in the form of interviews with a trio of iconic CEOs: Bill Stiritz, Peter McCausland, and Paul Montrone. All three took advantage of M&A opportunities to help build long-term returns but often found themselves at odds with the short-term focus of Wall Street and merger investors. Told in lively, accessible prose, with bonus facts and figures for transaction junkies, Merger Masters is an incomparable set of stories with plenty of unfiltered lessons from the best managers of our time.
About the Author
Kate Welling is the editor and publisher of Welling on Wall St., an independent financial journal. A well-known financial journalist, she was managing editor of Barron’s.
Mario Gabelli is the chairman and chief executive officer of GAMCO Investors, Inc. A merger master in his own right, he is one of the country’s leading money managers and investors.
Kate Welling is the Editor, Publisher & CEO of WellingonWallSt., a journal of independent research, analysis, opinion and insight. She is a graduate of the Northwestern University Medill School of Journalism.
Mario J. Gabelli is the Chairman and Chief Executive Officer of GAMCO Investors, Inc., the firm he founded in 1977. A 1965 summa cum laude graduate of Fordham University's College of Business Administration, he also holds an M.B.A. from Columbia University Graduate School of Business, and honorary doctorates from Fordham University and Roger Williams University.
Table of Contents
Abbreviations and Wall Street Terms xi
Introduction-Why This Book? Mario J. Gabelli 1
Part I The Arbs' Perspectives
Chapter 1 Guy Wyser-Pratte 19
Chapter 2 Jeffrey Tarr 37
Chapter 3 Martin Gruss 49
Chapter 4 Paul Singer 58
Chapter 5 Michael Price 74
Chapter 6 Peter Schoenfeld 89
Chapter 7 John Paulson 99
Chapter 8 Paul Gould 109
Chapter 9 George Kellner 116
Chapter 10 Roy Behren and Michael Shannon 127
Chapter 11 Karen Finerman 141
Chapter 12 John Bader 152
Chapter 13 Clint Carlson 164
Chapter 14 James Dinan 178
Chapter 15 Drew Figdor 190
Chapter 16 Jamie Zimmerman 202
Chapter 17 Keith Moore 217
Part II The View from the Other Side-The CEOs
Chapter 18 William Stiritz 231
Chapter 19 Paul Montrone 253
Chapter 20 Peter McCausland 272
Appendix I Risk Arbitrage Decision Tree 297
Appendix II Deals 301
Appendix III A Note on Methods 369