Carlson Capital's Black Diamond Arbitrage Partners was down 0.91% net for the second quarter, bringing its year-to-date return to -1.52%. Merger arbitrage investments detracted 24 basis points from the fund's quarterly return, although special situations and other event-driven positions were responsible for a much larger detraction of 84 basis points.
As of the end of June, 87% of the Black Diamond Arbitrage fund's long market value consisted of merger investments.
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In his second-quarter letter to investors, which was obtained by ValueWalk, Event-Driven chief Jesse Ho said they "effectively navigated market volatility" during the second quarter. Although they fell short of their goal and track record of positive returns in all market environments, they are "quite enthusiastic about the current opportunity set."
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