Carlson Capital's Black Diamond Arbitrage Fund declined 3.22% net for the first quarter, with merger arbitrage investments to blame for the lion's share of that decline. As of the end of March, merger investments represented 77% of the fund's long market value.
In his first-quarter letter to investors, which was obtained by Hedge Fund Alpha, Jesse Ho reported that their merger arbitrage investments subtracted 261 gross basis points from the fund's first-quarter return. Special situations and other event-driven positions detracted another 54 gross basis points.
Q1 2023 hedge fund letters, conferences and more
