Amundi Alternative Investments and FrontFour Capital Group are combining to actively trade an event-driven strategy in North America, which is being funded
by Amundi in the amount of €50 million. The fund complies with the Alternative Investment Fund Managers Directive (AIFMD).
FrontFour has run the strategy since 2006 and it focuses on the small and mid-cap market. The investment team looks for value-boosting events such as mergers and acquisitions, asset spin-offs, stock buybacks and management changes. It invests across the capital structure looking for the most lucrative risk-versus-reward strategies.
Michael Hart, deputy chief executive officer and global head of business development at Amundi, says: "With event-driven activity expected to remain elevated over the coming years, we believe that FrontFour Capital Group's investment approach will continue to generate alpha through exploiting idiosyncratic opportunities. The team has demonstrated an ability to invest successfully in equity and credit instruments which is another attractive feature given where we are in the cycle."
The relationship will see FrontFour joining forces with Amundi's AIFMD-compliant managed account platform based in Ireland.
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