Risk-arbitrage hedge funds have the broadest mandate of all of the four hedge fund categories.

Question

Quizplus · Accepted Answer

Risk-arbitrage hedge funds, also known as merger arbitrage funds, specialize in profiting from the price discrepancies that occur before and after a merger or acquisition. Their mandate is more specific compared to other hedge fund categories, such as global macro funds, which have a broader mandate to invest across various asset classes and geographies based on macroeconomic trends.

Risk-Arbitrage Hedge Funds Have the Broadest Mandate of All of the Four