Sequenom, Linkedin and Diamond Resorts

I initiated a ~10% position in Sequenom, Inc. (Ticker: SQNM) at $2.37. This company is being acquired by Lab Corp. (Ticker: LH) for $2.40 in cash via a tender offer, which expires on September 7^th. I expect this deal to close on September 7^th, which would equate to a net gain of ~ 1.26% (~15% annualized return). I see this as a rather straight forward deal with minimum risk. It was rather easy to build a position at the bid price of $1.37.

I also picked up some Linkedin (Ticker: LNKD) (long stock and short Puts). Everyone knows this story and is probably a core holding for many large merger arb funds. I see this as a very safe arb play and an area to park some extra cash. I anticipate a closing by the end of November, which would equate to a net gain of ~ 2% (~6% annualized return). A rather boring merger arb play, but sometimes you need to be a bit conservative.

Finally, I initiated a position (~ 8% position) in Diamond Resorts (Ticker: DRII) at $29.50. This time share company is being acquired by Apollo for $30.25 in cash via a tender offer. The first tender expired and has been extended to August 24^th. I see a good chance that this deal will close on August 24^th if they’re able to quickly complete the debt offering.