Live From the Desk

Opportunity Knocks – Part 1

Part 1: Forecast calls for clearing skies As some of you may have noticed, our outlook in the 2011 year-end commentaries shifted from caution to forward looking optimism. So far this year, indicators have been promising with the markets (especially south of the border) providing consistent returns and the US economy surprising with a string …

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Hybrids with Power

Hybrids with Power: Battery not required We have been big fans of hybrid securities since the liquidity crisis of ’08-’09. Now we have even more reason to favour these investment vehicles. A hybrid security is a debt instrument which pays a fixed-coupon interest payment that will convert to a floating rate over LIBOR after set …

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Waiting for Stability

Open the door just a wee bit more … A sentiment echoed by the plethora of companies waiting to test the IPO market. In the unstable markets of the last nine months, we have seen almost no equity IPOs but that may change very soon. We have already witnessed the first step, companies testing the …

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A Hostile Resolution

As a quick follow up to our Into Hostile Territory email (sent January 4th), about Canadian hostile transactions, we are pleased to note the resolution of the final two situations: CANMARC and Ruggedcom. In mid-January, CANMARC received a sweetened offer from Cominar: an 8% increase to $16.50 per share. Yesterday morning, it was announced that …

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Into Hostile Territory

We have seen five hostile transactions in Canada since July. While hostile bids for US-based companies have not been a mainstay of our event-driven strategies, hostile Canadian bids have historically offered particularly attractive risk-adjusted returns. The primary reason for the difference between the two jurisdictions is the emergence of the “just say no” defense in …

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