Merger arbitrage has been a winning strategy for many this year, and especially for Havens Advisors. On the strength of positions in merger arbitrage and fixed-income special situations, Havens Enhanced portfolio, a levered version of the flagship, has earned 26.22% as of October 31. The flagship Havens Partners, meanwhile, earned 15.73% over the same period to produce an annualized return of 10.02% since inception in 1996, with a Sharpe ratio of 1.41 and no down years. By comparison, the Absolute Return Arbitrage Index has returned 9.90% through October.
International arbitrage in the third quarter contributed to 79% of the