• After two turbulent months, May saw a return to calm for the markets and also for merger arbitrage, with most asset classes ending the month in positive territory and the HFRX Merger Arbitrage Index posting a 1.42% gain (in US dollars) over the month.• Overall, merger arbitrage spreads tightened somewhat. Notable examples include the narrowing of Hess ahead of the arbitration between Chevron and Exxon over the Stabroek oil field off the coast of Guyana, and the rise in Covestro, which is making good progress with the various competition authorities. Ansys, still awaiting approval from the Chinese authorities, benefited from the easing of tensions between the US and China.
• In addition, just over a dozen transactions were completed, which also contributed to the tightening of spreads.
• The notable event of the month was the resumption of M&A activity after a period of uncertainty linked to the trade war launched by the Trump administration. Thirty-two new transactions were announced during the month, compared with only 13 in the previous month.
• While activity remains modest in the US, Europe and especially Asia have taken over, accounting for 47% of total new transactions. Japan was particularly active, with not only one significant transaction (the purchase of NTT Data Group by its parent company for $14 billion) but also a large number of smaller deals.
• As expected, the fall in interest rates is enabling financial buyers to continue deploying their capital. Private equity groups accounted for nearly 25% of new transactions.

• The fund posted a positive performance during the month.• The main contributors to performance were: additional payment on the acquisition of Chinook Therapeutics by Novartis, Covestro, Surmodics.
• The main detractors to performance were: Hess, ChampionX, Spartan Resources.

• The fund's investment ratio is 57%, up from the previous month.• With 53 positions in the portfolio, diversification remains satisfactory.
• 2025 continues to look much more promising than 2024 thanks to a more favourable antitrust environment for M&A activity worldwide: the change of administration in the US following Trump's election, the publication of the Draghi report in Europe recommending the emergence of national champions to face global competition, regulators in the UK being pushed by politicians to prioritise economic activity, and the Japanese market continuing to open up to foreign capital.
• Lower interest rates should also drive M&A activity in the coming quarters.
• However, instability linked to the trade war launched by the Trump administration and geopolitical tensions are slowing the recovery, which is less robust than we had hoped.