In Springview Capital Management's Q2 2023 letter, Activision Blizzard (ATVI, Financial) was discussed as a successful merger arbitrage investment. The fund initiated this position following Microsoft's agreement to acquire ATVI for $95 per share in cash. Despite regulatory challenges, the fund built a position at an average price of ~$78 and exited most of it at ~$88, achieving an IRR of +16.5% over a ten-month period. The investment was characterized by regulatory and legal risks, which were not correlated with the broader market.
"Special situations like ATVI with 'hard catalysts' and uncorrelated risk profiles can be leveraged so long as the rest of the portfolio remains conservatively financed." — Springview Capital Management, Q2 2023 Fund Letter
Read full letter at gurufocus Springview Capital Management 2023 Q2 page.
