Well, it’s a nice to be finally in the green for the year. A good portion of the positive performance in May can be attributed to the various special situation / merger arb plays. For example, I got lucky with Nanosphere (Ticker: NSPH
) in which there was a nice bump in price as another bidder came knocking on the door. In addition to Nanosphere, I am currently in the following special situation / merger arb plays: DreamWorks Animation (Ticker: DWA
), Medivation (Ticker: MDVN
), Qihoo 360 (Ticker: QIHU
), Morgan Hotel Group (Ticker: MHGC
), WaferGen Bio-systems (Ticker: WGBS
), Krispy Kreme (Ticker: KKD
) (short puts) and Cabela's (Ticker: CAB
), which I just initiated this afternoon after checking out a write up from the NY Post.
I do not remember a time in which there was so much M&A activity occurring in a single month. In the start of the year, I envisioned that M&A would be subdued for 2016, but I’m glad to be wrong.
Now it’s just watching the grass grow as I wait for these positions to close…
2016 Performance Year to Date = +5.17% with the running monthly returns as follows: