Carlson Capital's Black Diamond Arbitrage fund declined 2.2% net of fees during the second quarter. Following this return, year-to-date, the fund has produced a negative net return of 5.3%, according to a copy of its second-quarter update Hedge Fund Alpha has been able to review.
In his latest update to investors, Jesse Ho, head of event-driven strategies at Carlson, explains the fund's merger arbitrage investments detracted 206 basis points from the second quarter return. In comparison, special situations and other event-driven positions detracted one basis point (negative 205 and negative 12 basis points on an estimated net basis, respectively).
The backdrop in the M&A market during the second quarter picked up from the relatively benign environment in the first quarter.
Volumes increased by...
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