Arbitrage Trading Strategies
Systematic exploitation of market inefficiencies through engineered solutions
The Power of Arbitrage Trading
Arbitrage is the simultaneous purchase and sale of the same asset in different markets to profit from price discrepancies. These inefficiencies occur when markets are fragmented, information flows unevenly, or structural barriers prevent immediate price alignment. Unlike traditional investing, arbitrage seeks market-neutral returns by locking in price differences at execution.
Our arbitrage strategies generate profits from three primary sources: (1) Early identification of mispricings before the broader market, (2) Structural advantages in execution that allow us to capture spreads others cannot, and (3) Active negotiation to create arbitrage opportunities where none existed before.
For our clients, arbitrage provides crucial portfolio benefits: returns uncorrelated to traditional assets, consistent positive carry, and capital efficiency through leverage. We specialize in complex, negotiated arbitrage situations that require specialized expertise rather than commoditized strategies vulnerable to competition.
Our Active Arbitrage Focus Areas
We specialize in these actively engineered arbitrage opportunities:
Early-Stage Opportunity Arbitrage
Identifying and structuring arbitrage opportunities 6-12 months before broad market recognition through our proprietary deal flow network.
Example: Pre-announcement positioning in corporate actions using bespoke instruments
OTC Block Trade Arbitrage
Negotiating bilateral trades with institutional counterparties to capture spreads unavailable in public markets.
Example: Cross-market block trades with simultaneous hedging execution
Negotiated Spatial Arbitrage
Creating geographical price differences through structured transactions rather than passive observation.
Example: Engineered commodity flows between regulated markets
Event-Driven Temporal Arbitrage
Positioning ahead of known market events with customized timing strategies.
Example: Index rebalancing with pre-arranged liquidity provision
The Arbitrage Advantage
Why our approach delivers consistent alpha in efficient markets
Structural Edge
- Proprietary access to 40+ trading venues
- Bilateral agreements with 200+ counterparties
- Legal structures in 18 jurisdictions
Execution Capabilities
- Sub-millisecond trade execution
- Custom hedging solutions
- Multi-leg transaction engineering
Performance Metrics
- 89% monthly positive return rate
- 0.15 correlation to equities
- 3.4x capital efficiency ratio
Our Negotiated Arbitrage Process
Structured approach to creating and capturing negotiated arbitrage opportunities
Opportunity Origination
Leveraging our global network of 400+ corporate and institutional relationships to identify potential negotiated arbitrage situations before they become widely known.
Counterparty Engagement
Simultaneous negotiations with all parties to structure favorable terms, often creating arbitrage opportunities that wouldn't exist in public markets.
Custom Instrument Design
Developing bespoke financial instruments and legal structures that enable the arbitrage while meeting all parties' requirements.
Asymmetric Execution
Coordinated execution across multiple venues and counterparties to lock in spreads before market participants can react.
Active Spread Management
Continuous optimization of positions through our dedicated arbitrage desk, adjusting hedges and exposure as market conditions evolve.
Benefits Across Client Types
How our negotiated arbitrage strategies serve diverse investors
For Individual Investors
Exclusive access to sophisticated arbitrage strategies through structured products and managed accounts
For Corporate Clients
Custom liquidity solutions and cross-border arbitrage structures for treasury optimization
For Family Offices
Portfolio diversification through market-neutral arbitrage strategies
Capital Efficiency
Optimized use of capital through structured transactions and strategic leverage
For Institutional Investors
Direct participation in large-scale negotiated arbitrage opportunities
Transparent Structures
Full legal and operational transparency on all negotiated transactions
Case Study: Structured Cross-Border Arbitrage
Client Type
European Family Office
Solution
Negotiated Dual-Currency Structure
We designed a bespoke cross-currency arbitrage solution that capitalized on regulatory differences between jurisdictions, providing enhanced yield potential while maintaining capital preservation characteristics.
Why Our Arbitrage Approach?
Traditional arbitrage waits for opportunities, we engineer them through structured negotiations and multi-party transactions.
Active Creation
73% of opportunities created through proactive deal structuring
Global Network
400+ institutional counterparties across all asset classes
Structural Advantages
Proprietary legal entities enabling unique transactions
Arbitrage Strategy FAQs
How do you manage risk in arbitrage strategies?
We employ a three-layered risk framework: (1) Structural hedging locking in spreads at inception, (2) Operational controls monitoring all transaction components, and (3) Contingency plans for break scenarios. 92% of risk is hedged at execution.
What's your typical holding period?
Positions follow this timeline: 0-30 days (establishment/hedging), 30-90 days (active management), 90-180 days (orderly unwind). Most spreads are captured within 60-90 days.
How do you source opportunities?
Three primary sources: (1) Algorithms scanning 40+ markets, (2) Network of 150+ corporate teams, (3) Regulatory dialogue about pending changes creating new arbitrage possibilities.
What are the minimum investments?
While not strict thresholds, we generally target a minimum total capital commitment of $5M per arbitrage position ($2M for aggregated fund structures such as SPVs).
Client Allocation Minimums: Vary by specific opportunity and participation terms.
How do you measure success?
We focus on four core metrics: net spread captured, capital efficiency, win rate, and performance under stress. Together, they reflect both the consistency and resilience of our approach.
Ready to Access Engineered Arbitrage?
Discover how our proactive arbitrage strategies can enhance your portfolio's risk-adjusted returns with low correlation to traditional assets.