ANCHOR ENGLISH SAYING

Now, John, you don't just do merger arb but you've got this event-driven strategy, so let's start there. Briefly, what does that mean?

JOHN ORRICO MANAGER OF ARBITRAGE FUND ENGLISH SAYING

Sure. Well, merger arbitrage is a key component of a broader event-driven strategy approach that our firm takes across the marketplace. What we mean by event-driven are distinct corporate actions such as mergers, spinoffs, tender offers, restructurings that allow our investment team to look at both the equity component or the fixed income component of those companies to decide how best to invest in investor dollars.

ANCHOR ENGLISH SAYING

On the M&A side, we've had some real interesting deals in the headlines for quite a few months. Now, did any of that activist-investing prompt you to change the way you're holding your allocations?

JOHN ORRICO MANAGER OF ARBITRAGE FUND ENGLISH SAYING

Well, sure, I think that we look at what a lot of the activist investors are doing and determine whether or not any of those particular situations might be appropriate for equity special situations portfolios, whether it'd be an activist situation where the shareholders are trying to get the company management to spinoff divisions. We see that happen in a number of cases with Nelson Peltz going after Ingersoll-Rand or PepsiCo, or even some of the situations where activists are agitating management to put their companies up for sale. So we'll take positions in some of those companies in our event-driven accounts if we think the appropriate risk-award is in place.