Arbitrage Plays (James answer 7/28)

Description:

"James et al,

Buffet said he could likely make 50% on a $1 mil portfolio. The assumption is that he'd use arbitrage. You've mentioned liquidation arbitrage. Are you aware of any resources for this esoteric method i.e. websites, newsletters, books?"

Reply from James Altucher
At that time he said that (1998) the spreads in arb situations were a lot higher than they normally are today. Many of those spreads have been arbed away by hedge funds. However, those spreads are alive and well today in many of the deals right now that are in question (DJ, HLT, TRB, CCU, FDC, etc). Selloffs like this past week are perfect opportunities. Personally, I think a site like stockpickr is the best spot to find those opportunities. For instance search "arbitrage" and you'll find a portfolio with the largest spreads that was created today.

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