Merger Arbitrage Fund Pentwater Boosted Activision Stake Before Key Court Nod

  • Firm added most among hedge funds in Q2, filings show
  • Jericho Capital, Balyasny, Citadel Advisors also lifted stakes
Lock
This article is for subscribers only.

Pentwater Capital Management LP led hedge funds boosting stakes in Activision Blizzard Inc. last quarter before a make-or-break July court decision on the video-game maker’s proposed $69 billion merger with Microsoft Corp.

Pentwater, among the best-known firms that focus on event-driven strategies including merger arbitrage, added about 5.87 million shares in the period — more than any other hedge fund — according to quarterly filing data compiled by Bloomberg. That brought its position to 21.3 million shares, which would be worth roughly $1.9 billion at current prices if the firm still holds the shares.