More Medivation

I’ve been loading up on Medivation (Ticker: MDVN) as this represents a very nice risk reward merger arbitrage play. I have increased my position in Medivation to ~ 50% of my portfolio (I had a ~ 15% position prior to the Pfizer (Ticker: PFE) acquisition announcement). The current price of ~ $80.25 represents a net gain of ~1.5% (~15% annualized return assuming a close by September 30th). The tender offer will commence next week with a potential closing at the end of September. I see minimal regulatory risk and Pfizer is good with the cash. I really like these type of relatively low risk merger arb plays…