Many Wall Street strategists are expecting M&A to pick up in the first half of 2025 given M&A volumes as a percentage of GDP remain at historical lows. We suspect volumes were depressed due to a combination of higher rates and a feeling of a more adversarial regulatory environment. Pier 88 submits that many traditional long only and hedged strategies have structural biases that could prevent them from fully capitalizing on an impending M&A wave. We believe the Pier 88 Lake Geneva strategy has a decade plus track record demonstrating a robust investment process that can benefit from an M&A cycle (over 60 Pier 88 portfolios taken out by M&A or PE transaction since 2013.)

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