Changing Course

As traditional merger arbitrage opportunities are drying up, managers are moving into more unusual deals.

Charles Sweat was feeling pretty good at the beginning of July. As co-manager of a merger arbitrage portfolio for $209 billion Dutch fund manager Robeco Asset Management, he’d made a decent return in the first half of 2007 and had plenty of deals to play, including the $96 billion hostile takeover battle for Dutch bank ABN Amro.

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