A number of hedge funds have made a lot of money after betting that the gas giant Chevron will successfully buy out competitor Hess Corporation for $53 billion.
Bloomberg reported that firms that specialize in merging arbitrage could be in for a windfall of billions after the 20-month long court arbitration was finally completed on Friday.
The strategy of merger arbitrage involves taking long or short positions on stocks in companies that are involved.
Morgan Stanley calculated that Hess shares were most commonly held positions for merger arbitrages, totaling $10 billion in US.
Ken Griffin, Adage Capital, and HBK Investments were among the notables who bet on this acquisition.
Roy Behren is the co-chief Investment Officer at Westchester Capital. He says that the firm had approximately $350 Million in Hess Shares in anticipation of this acquisition.
I’ve waited for years to see this happen. After a year-and-a-half, I believe the correct outcome was reached… the Hess stake is the biggest position that we’ve had over the last 15 years. Our consultants and analysts were right when the arbitration panel made its decision. .”
Bloomberg reports that Citadel, HBK and HBK had each the equivalent of one billion dollars in stock, according to their latest filings.
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The post Ken Griffin’s Citadel and Other Hedge Fund Giants Take Over US Energy Company for $53,000,000,000: Report can be updated as new developments unfold.
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