| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 6.54% | 0.27% | 0.27% |
VH Standard Merger Arb Fund delivered a +0.27% net return in Q1 2026 despite broader market weakness, with the S&P 500 declining -4.6%. The fund maintained substantial cash throughout the quarter due to continued deal completions, which helped generate positive returns when many portfolios likely declined. Since inception in July 2023, the fund has generated a 6.54% annualized net return with 5.68% standard deviation and 66.7% positive months. The strategy focuses on merger arbitrage with 98.1% current long exposure across 49 deals. Historical analysis shows a 95.7% completion rate across 387 completed deals versus 17 failed deals since inception. Healthcare represents the largest sector allocation at 19.4%, followed by technology at 18.1% and financials at 12.9%. The fund targets deals under $5 billion, which comprise 75.8% of the historical universe and provide scaling advantages. Real estate has shown the best completion rate at 100%, while consumer discretionary has the lowest at 93.5%.
Preserve capital through diversified merger arbitrage strategy while generating absolute returns with limited volatility during market downturns
Manager continues to look for opportunities to compound investment over time, with focus on deals under $5 billion which make up 75.8% of historical universe and provide scaling advantages for smaller funds.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| May 22 2026 | 2026 Q1 | - | capital preservation, healthcare, M&A, Merger Arbitrage, risk management, technology | - | VH Standard delivered +0.27% in Q1 2026 while markets declined, maintaining 98% long exposure across 49 merger arbitrage deals. The fund has achieved 6.54% annualized returns since 2023 inception with 95.7% deal completion rate. Healthcare and technology dominate the portfolio, with focus on sub-$5B transactions providing competitive advantages for the smaller fund size. |
| Feb 20 2026 | 2025 Q4 | EA, EXAS, JAMF, KVUE, NSC, QRVO, SGOV, WBD | AI, Capital markets, Deregulation, M&A, Merger Arbitrage, Onshoring, Regulatory, Spreads | - | VH Standard delivered 14.79% returns in 2025 by capitalizing on inefficient merger arbitrage spreads as capital fled during regulatory uncertainty. The fund is adapting to emphasize transformational deals and financing risk as the regulatory environment becomes more favorable for M&A activity, with AI and onshoring creating new opportunities. |
| Nov 13 2025 | 2025 Q3 | AL, ANSS, CYBR, DAY, EA, GTLS, HES, HOUS, INFA, MRUS, MTSR, NSC, PBPB, PLYM, SKX, TECK, TURN, VRN, WBA, ZIMV | capital preservation, Deregulation, M&A, Merger Arbitrage, risk management | - | VH Standard delivered exceptional Q3 performance (+5.77%) in a favorable M&A environment driven by deregulation. The fund operates like an insurance company, focusing on long-term book value growth through disciplined merger arbitrage across 52 diversified deals. Strong risk management and nimble positioning have generated +13.33% YTD returns, outperforming the HFRI merger arbitrage index. |
| Sep 3 2025 | 2025 Q2 | BASE, BERY, BPMC, BRDG, COOP, DFS, ESGR, GMS, GTLS, HES, JNPR, JWN, LFCR, RDFN, SGOV, SPTN, STR, SWTX, TURN, X | Antitrust, Cash, Deregulation, M&A, Merger Arbitrage, Regulatory | - | VH Standard capitalized on dramatically improved M&A regulatory environment to deliver +8.31% Q2 returns. New administration's permissive antitrust approach is accelerating deal timelines and activity. Fund holds significant cash awaiting attractive opportunities while biotech M&A drives current returns. Manager expects broader deal acceleration as operators adapt to freer market conditions. |
| May 17 2025 | 2025 Q1 | ALTM, ALTR, APO, AZPN, BECN, BRDG, COF, DFS, DNB, EDR, ESGR, HCP, HEES, HHH, HRI, JNPR, JWN, K, PDCO, PLYA, RDFN, RDUS, SWTX, TURN, WBA | Capital markets, M&A, Merger Arbitrage, risk management, volatility | - | Merger arbitrage fund recovered from Q1 losses with strong April performance, demonstrating value-add during market volatility. Manager expects significant pickup in M&A activity and competitive bidding similar to 1980s boom, with current subdued environment creating opportunity for excess returns when deal activity normalizes. |
| Jan 27 2025 | 2024 Q4 | ALTM, ALTR, AXNX, CDMO, CTLT, ESGR, GBNY, HCP, HES, INST, IPG, JNPR, JWN, MRNS, PDCO, PTVE, RCM, SMAR, SRCL, SRDX | Antitrust, Deal Flow, M&A, Merger Arbitrage, Regulatory, Trump | - | VH Standard's merger arbitrage strategy suffered from CPRI deal failure but positions for 2025 recovery amid Trump administration's expected M&A-friendly policies. Manager anticipates increased deal flow, shortened regulatory timelines, and return of mega transactions. Portfolio positioned as net buyer with enhanced analytical capabilities and selective approach to avoid high-risk regulatory situations. |
| Oct 31 2024 | 2024 Q3 | CPRI, CTLT, EDR, ESGR, FYBR, GBNY, HCP, HES, JNPR, K, MGRC, MNTX, RCM, SMAR, SRCL, SRDX, VBFC | Deal Analysis, diversification, insurance, M&A, Merger Arbitrage, risk management | ESGR | VH Standard runs a diversified merger arbitrage strategy balancing risk and return without leverage. The fund's largest position ESGR offers attractive risk-reward from an insurance deal with exceptionally low premium. Recent deal breaks in MGRC and CPRI highlight regulatory risks, but five consecutive positive months demonstrate the strategy's ability to generate steady absolute returns through active risk management. |
| Aug 2 2024 | 2024 Q2 | AMED, AMK, AMZN, CERE, CPRI, FREE, HCP, HES, HIBB, INTC, IRBT, JBLU, JNPR, MXL, SAVE, SIMO, SQNS, TSEM, VMW, VZIO | capital preservation, diversification, healthcare, Merger Arbitrage, risk management, technology | - | VH Standard completed its first year with strong risk management, achieving 95.1% deal completion rate and 3.85% net returns. The merger arbitrage landscape appears more attractive now with better spreads and potential regulatory catalysts. Healthcare dominates at 27% of portfolio, with technology at 24.3%. Manager expects improved deal activity ahead. |
| May 8 2024 | 2024 Q1 | AMED, AXNX, AYX, CBAY, CPRI, DOMA, ETRN, HAYN, HES, KRTX, NWLI, PXD, SCX, SPLK, TAST, TCN, TDCX, TGH | Cash Alternative, diversification, liquidity, Merger Arbitrage, risk management | - | VH Standard's merger arbitrage fund operates as a cash alternative, generating returns through M&A completions while maintaining high liquidity via monthly redemptions. March saw 10 deal closures including SOVO and HARP, leaving 22% cash for redeployment. The self-liquidating strategy emphasizes diversification across uncorrelated transactions and statistical underwriting of deal completion probabilities. |
| Jan 23 2024 | 2023 Q4 | AMED, AYX, CERE, CHS, CPRI, HES, IMGN, KRTX, MDWT, OLK, PATI, PCTI, PFIN, RYZB, SGEN, SOVO, SPLK | Absolute Returns, Deal Completion, diversification, M&A, Merger Arbitrage, risk management | - | VH Standard delivered 7.63% net returns in six months through merger arbitrage strategy, completing 44 deals since July inception. Fund focuses on high-probability M&A transactions with 3-5 month holding periods, emphasizing downside protection and diversification. Manager highlights compounding benefits as hurdle rates increase on growing capital base, positioning to become leading merger arbitrage specialist. |
| Oct 7 2023 | 2023 Q3 | AAPL, ATVI, AVGO, HZNP, SGEN, VMW | Completion Risk, M&A, Merger Arbitrage, Regulatory, Risk Arbitrage, Spreads | - | VH Standard's merger arbitrage fund delivered 1.14% in September, reaching 4.26% year-to-date gross returns. Despite spread tightening since August as market confidence improved following regulatory wins, the strategy remains attractive with 11.1% average annualized yields versus 4% historically. The fund maintains diversified exposure across 32 deals, recycling capital into new opportunities exceeding hurdle rates. |
| Aug 15 2023 | 2023 Q2 | ATVI, AVGO, CYBR, FORG, FREE, IBM, MSFT, OKTA, ORCL | gaming, Merger Arbitrage, Regulatory, risk management, Spreads, technology |
ATVI BHARATFORG.NS FREE |
VH Standard launched its merger arbitrage fund in July 2023, generating 0.34% gross returns in its inaugural month. The manager views current conditions as highly attractive due to regulatory uncertainty creating wider spreads and higher interest rates. Key positions include ATVI following the favorable Microsoft court ruling and FORG based on narrow DOJ market definition analysis. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
Biopharma M&AThe fund's historical universe shows healthcare comprising 19.4% of deals since 2015, making it the largest sector by deal count. Recent completed transactions include significant healthcare deals like CYBR ($25B) and EXAS ($23B). |
Healthcare M&A Biotechnology Pharmaceuticals |
| 2025 Q4 |
Biopharma M&AManager sees meaningful shift in merger arbitrage landscape with spreads becoming less efficient due to capital leaving the space during tough regulatory years. Expects increased M&A activity following regulatory pendulum swing and places greater emphasis on transformational deals. |
M&A Spreads Regulatory Deals Arbitrage |
AIManager identifies AI as the biggest catalyst to be unleashed into economies, creating a sea of change and tremendous opportunity as well as risk in analyzing underlying companies and their merged parts. |
AI Catalyst Economy Technology | |
OnshoringManager expects monumental shift in global economy due to tariffs and current U.S. administration goals. Onshoring and supply chain re-optimization will create new winners and losers, requiring fundamental analysis perspective. |
Tariffs Supply Chain Manufacturing Trade | |
| 2025 Q3 |
Capital MarketsThe manager discusses operating in a buoyant M&A environment with positive tailwinds from deregulation and favorable economic framework. The fund's strategy is compared to operating an insurance company, focusing on growing book value over the long term through merger arbitrage transactions. |
M&A Deregulation Transactions Book Value Insurance |
| 2025 Q2 |
Biopharma M&AThe manager notes a significant pickup in M&A activity within the biotech-pharma-healthcare industry recently, which has provided deal flow for the portfolio. Johnson & Johnson's $15 billion acquisition of Intra-Cellular received no regulatory scrutiny, exemplifying the more permissive environment. |
Healthcare Pharmaceuticals Biotechnology Regulatory Transactions |
| 2025 Q1 |
Capital MarketsThe manager expects M&A activity to pick up significantly, leading to increased overbids and excess returns. Current environment shows minimal overbids, quiet go-shops, and subdued optimism, but historical patterns suggest this will revert to more competitive conditions similar to the 1980s merger boom. |
M&A Overbids Competition Auctions Transactions |
| 2024 Q4 |
Biopharma M&AThe fund experienced significant losses from the CPRI transaction failure in October, with the judge ruling against the merger based on novel antitrust theories about affordable luxury handbags. Despite this setback, the manager notes 33 deals completed between October and year-end with only 4 failures, indicating continued M&A activity in the sector. |
Merger arbitrage Deal completion Regulatory risk Transaction failure Antitrust |
| 2024 Q3 |
Biopharma M&AThe fund is positioned across multiple merger arbitrage transactions in the healthcare sector, including deals like CTLT and other healthcare-related M&A activity. The manager discusses the strong success rate of insurance company transactions and analyzes deal-level risk across various sectors including healthcare. |
Healthcare M&A Transactions Success Rate Risk Analysis |
| 2024 Q2 |
Biopharma M&AThe fund has significant exposure to healthcare merger arbitrage opportunities, representing 27% of the portfolio. Recent completed transactions include SGEN (Seagen) acquired by Pfizer, which generated a 0.96% gain for the fund. |
Healthcare Mergers Arbitrage Biotech Pharma |
| 2024 Q1 |
Biopharma M&AThe fund participated in several completed biotech transactions during March, including SOVO which was one of their largest risk exposures. The SOVO transaction received FTC additional information requests in October, prompting the manager to double their position from 2% to 5% of AUM before reducing exposure as the stock price approached the deal price. |
FTC Regulatory Biotech Compliance Risk |
| 2023 Q4 |
Biopharma M&AThe fund completed 44 deals since inception with merger arbitrage strategy focused on M&A transactions. Notable position in Seagen closed yielding positive contribution. Strategy involves investing in securities of companies involved in mergers, acquisitions, tender offers, and asset sales. |
Mergers Acquisitions Biotechnology Deal Completion Arbitrage |
| 2023 Q3 |
Biopharma M&AThe fund is actively invested in several biotech merger arbitrage opportunities including SGEN, HZNP, and ICPT transactions. The manager notes continued progress in these deals and sees them as part of the attractive M&A universe. |
Biotech Mergers Healthcare Arbitrage Transactions |
| 2023 Q2 |
Biopharma M&AThe fund operates as a merger arbitrage strategy focused on definitive merger agreements across sectors. The manager describes building a portfolio of DMAs similar to an insurance operation with written premiums and catastrophe losses. The regulatory environment has made spreads more attractive than usual. |
Merger Arbitrage Spreads Regulatory Antitrust Completion Risk |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 1, 2024 | Fund Letters | VH Standard Asset Management | ESGR | Enstar Group Limited | Financials | Insurance | Bull | NASDAQ | acquisition, Appraisal Rights, Bermuda, Book Value, Insurance, Merger Arbitrage, premium, risk management, Sixth Street | Login |
| Jul 31, 2023 | Fund Letters | VH Standard Asset Management | ATVI | Activision Blizzard Inc | Communication Services | Interactive Media & Services | Bull | NASDAQ | acquisition, antitrust, Equity, Gaming, Merger Arbitrage, Microsoft, Regulatory risk, Transaction Risk, Video games | Login |
| Jul 31, 2023 | Fund Letters | VH Standard Asset Management | BHARATFORG.NS | ForgeRock Inc | Information Technology | Systems Software | Bull | NYSE | antitrust, cybersecurity, DOJ, Equity, identity management, Merger Arbitrage, private equity, Regulatory risk, Software, Thoma Bravo | Login |
| Jul 31, 2023 | Fund Letters | VH Standard Asset Management | FREE | Whole Earth Brands Inc | Consumer Staples | Packaged Foods & Meats | Bull | NASDAQ | acquisition, consumer staples, CPG, Equity, Food, Jarden, leverage, Martin Franklin, Merger Arbitrage, Proposal | Login |
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