GDL Fund Announces Evaluation of Potential Strategic Alternatives
November 15, 2018 at 05:00 am
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The Board of Trustees of The GDL Fund (NYSE:GDL) announced that it will evaluate potential strategic alternatives for the Fund including a common share rights offering, common share repurchases or changes to the distribution policy. The results of the evaluation will be announced promptly after completion, which is expected over the next several weeks. The purpose would be to evaluate ways to enhance participation in what the Board believes to be an attractive environment to invest in merger arbitrage.
The GDL Fund (the Fund) is a diversified closed-end management investment company. The Fund's primary investment objective is to achieve absolute returns in various market conditions without excessive risk of capital. The Fund will seek to achieve its objective by investing primarily in merger arbitrage transactions and, to a lesser extent, in corporate reorganizations involving stubs, spin-offs, and liquidations. The Fund will invest at least 80% of its assets in securities or hedging arrangements relating to companies involved in corporate transactions or reorganizations, giving rise to the possibility of realizing gains upon or within relatively short periods of time after the completion of such transactions or reorganizations. It has investment in sectors, including financial services, energy and utilities, semiconductors, food and beverage, healthcare, wireless communications, automotive and cable and satellite. The Fund's advisor is Gabelli Funds, LLC.