Monday, July 06, 2009

Which Risk Arb Play Now?

With the closing of Nova Chemicals (Ticker: NCX), I started nibbling at another risk arb play. I picked up a few shares of Hiland Partners (Ticker: HLND), a gas limited partnership. This limited partnership is going private at $7.75 per unit (share). The downside for this stock is that it is very thinly traded. It took me several days just to build a small position. Definitely use limit orders with this stock. In any case, this deal is expected to close by the end of Q3 so you're looking at an annualized return of ~25%.


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