Biggest arb trade ever ends on 20 May…

Posted by on May 1, 2013 in ArbMaker News! | 4 Comments

Fascinating paper (HT: ft.alphaville.com) from Robert Treue III’s Barnegat Fund documenting what has been called in the popular press the largest arbitrage ever recorded. In the financial upheaval around the opening of this trade in late 2008 the fund was down 37%. But he had the room to absorb the vagaries of timing and come good.

A pic of the arb is below and some interesting background on Mr. Treue, in his own words, is here.

Most interesting, though, is that Barnegat do exactly what Long Term Capital Management did. Only with less leverage/more collateral.

barnegat

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