Monday, November 15, 2010

Out of Crucell and More Genzyme

I’ve been trading Crucell (Ticker: CRXL) heavily and now I am completely out of the stock. Crucell is a great risk arb play except for the fact that the acquisition price in is Euros. I have no doubt that this deal will close, but now the Euro looks very shaky and a declining Euro can wipe out the potential risk arb profits. Of course you can hedge by selling the Euro, but I like to keep it simple.

I started adding more to my Genzyme (Ticker: GENZ) position today. The big arb players are all over this. I can’t see how Genzyme stays independent with so many shares in hands of the arbs. One of the arb players I closely follow is Paulson & Co. In today’s SEC filing, Paulson picked up ~ 1.9 million shares in Genzyme. The 13F-HR filings for John Paulson (click: here).


Post a Comment

<< Home