Speculating on Mergers—and a Case of “Excessive” Due Diligence with Michael Samuels
This episode of Chat With Traders features a very special guest whom I first met after hearing him described as, “hands down the best trader I know…”
He is Michael Samuels, a very skilled equities trader who has worked for big funds such as First New York and Apex Capital. Currently he is focusing on his own venture, Broome Street Capital, but he kindly took the time to sit down with me and talk trading.
Michael is an ‘event driven trader’ who pays very close attention to news flow on mergers and acquisitions, shareholder activism and fundamentals. This unique take on the market has allowed him to spot valuation disconnects in unlikely places.
In this episode you’ll learn about merger-arb strategies (with examples), how a takeover really works, a case of “excessive” due diligence, opportunities missed and lessons learned during Michael’s career.
For those of you who would like to learn more about Michael, check out his podcast about merger and acquisition activity and the journalists who uncover the reports: According To Sources
Links and resources mentioned:
- Qualcomm Ends $44b NXP Bid After Failing to Win China Approval [Reuters]
- @AccordToSources [Twitter]