Call Me Manny the Arb

I earned more than 10% in just five weeks by investing in a takeover stock.

The stock market may be tumbling, but I'm feeling a bit cocky: I've scored my first winner in the esoteric world of merger arbitrage. With the completion of InBev's $52-billion purchase of beer icon Anheuser Busch on November 18, I pocket a $7-plus profit on each of my 500 shares of BUD. That's something worth crowing about, especially in this wretched market.

Oh, did I mention that it took just five weeks to book that 11.4% gain? That's how much time elapsed between October 13, when I bought my BUD shares, and November 18. That's an annualized rate of return of 195%. A toast to my acumen.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Manuel Schiffres
Executive Editor, Kiplinger's Personal Finance