London-based asset management firm Schroders is launching a merger-arbitrage offering that will be managed by hedge fund veteran John Paulson.
Investment Week reported that the Schroder GAIA Paulson Merger Arbitrage fund will invest primarily in U.S., Western European and Canadian large cap public equities involved in mergers and other corporate events. The fund is subject to regulatory approval.
Paulson already manages a merger arbitrage strategy through his New York-based Paulson & Co.
Paulson rose to fame after making $3.7 billion in 2007 by short-selling subprime mortgages. Paulson & Co. currently manages approximately $18 billion in in assets, down from its $36 billion AuM in 2010. Schroders' hedge-fund orientated GAIA platform, launched in 2009, currently has $5.6 billion in assets under management.