How Is Merger Investor Fund (MERFX) Performing?

Merger Investor Fund (MERFX) a Zacks Rank #2 (Buy) was incepted in January 1989 and is managed by Westchester Capital Management, Inc. MERFX seeks capital growth through merger arbitrage, including the selective use of short sales and put and call options to hedge positions. MERFX may invest at least 80% of its assets principally in the equity securities of companies, which are involved in publicly announced mergers, takeovers, tender offers, leveraged buyouts, spin-offs, liquidations and other corporate reorganizations. Merger arbitrage is a highly specialized investment approach generally designed to profit from the successful completion of such transactions.

This Mid Growth product, as of the last filing, allocates their fund in three major groups; Large value, Large Growth and Intermediate Bond. Further, as of the last filing, Time Warner Cable Inc., Starwood Hotels & Resorts Worldwide (NYSE:HOT) Inc. and Yahoo! Inc (NASDAQ:YHOO). were the top holdings for MERFX.

The Merger Investor fund, managed by Merger Fund, carries an expense ratio of 1.34%. Moreover, MERFX requires a minimal initial investment of $2,000.

MERFX has a history of positive total returns for over 10 years. Specifically, the fund’s returns over the 3, 5 year benchmarks; 3 year 1.60% and 5 year 1.42%. To see how this fund performed compared in its category, and other #1 and #2 Ranked Mutual Funds, please click here.

MERFX’s performance, as of the last filing, when compared to funds in its category was in the top 34% in 1 year, top 95% over the past 3 years, and in the 96% over the past 5 years.

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