This famed arbitrage hedge fund is benefiting from record-breaking M&A activity

Carlson Capital's Black Diamond Arbitrage Partners fund was up 3.37% net for the second quarter, bringing its year-to-date return to 4.72% net. Merger arbitrage positions contributed 355 basis points to the quarterly return, and special situations and other event-driven positions added 107 basis points. As of the end of June, merger investments amounted to 88% of the long portfolio.

Q2 2021 hedge fund letters, conferences and more

Record-breaking M&A activity

Jesse Ho of Carlson Capital said in his second-quarter letter to investors, which was reviewed by ValueWalk, that the fund was positioned to benefit from significant spread tightening in the...