28th Mar 2025 14:34
(Alliance News) - Gabelli Merger Plus+ Trust PLC on Friday said merger arbitrage investors "have been able to breathe a sign of relief" with US President Donald Trump back in office, as it posted a lower interim net asset value than a year ago.
The dedicated merger fund invests globally but has an "emphasis" on US-traded securities.
Gabelli said net asset value per share cum income fell 2.8% to USD10.14 as at December from USD10.43 a year prior.
NAV total return was 2.65% in the six months to December 31, down compared to 3.31% a year ago.
The company does not have a benchmark, but compared its NAV total return to that of the US 3-month treasury bill index, which was 4.34% in the six months to December 31, down from 5.35% a year prior.
The firm said: "Despite election uncertainty, risk assets in the US had another remarkable year in 2024; bolstered by moderating inflation, interest rate cuts, and solid economic growth. The S&P 500 returned 25%, led by big tech and other stocks adjacent to the artificial intelligence thematic."
During 2024, the company paid a total dividend of 52 US cents, up sharply from 24c for 2023.
Looking ahead, Co-Chairs John Birch and Marc Gabelli said they are enthusiastic for the year ahead.
"With President Trump once again taking up residency at 1600 Pennsylvania Avenue, merger arbitrage investors have been able to breathe a sigh of relief. The Biden administration's strict stance on antitrust enforcement has caused headaches for investors but, with recent changes to the US antitrust watchdogs, we expect to see a resurgence of robust deal activity following several months of pent-up demand.
"Key drivers of accelerating merger & acquisition activity in the coming years include the need to compete on a global basis, acquire new technologies and expand into emerging areas. We believe 2025 is setting up to be a promising and exciting time to be investing in global mergers and acquisitions, with strong tailwinds likely to propel new deal announcements in the months ahead," they said.
Gabelli shares were flat at USD8.00 each on Friday afternoon in London.
By Tom Budszus, Alliance News slot editor
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