Carlson Capital Sees Merger Arb Opportunities In Markets “Unlike anything we have seen in our careers”

Carlson Capital's Black Diamond Arbitrage Partners, L.P fund declined 3.45% net of fees during the first quarter of 2020, that's according to the fund's first-quarter letter to investors, which ValueWalk has been able to review.

Q1 2020 hedge fund letters, conferences and more

According to the letter, merger arbitrage investments detracted 196 basis points from first-quarter returns, while special situations and other event-driven positions detracted 132 basis points.

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March was a particularly painful month for the fund, although not on a relative basis. In the month of March alone, Black Diamond Arbitrage lost 3.64% as markets around the...