Twin Securities, Inc.

Twin Securities, Inc. advises privately offered pooled investment vehicles — including a Cayman Master Fund, domestic and offshore feeder funds, and an Opportunities Fund — and also provides discretionary management for separately managed accounts (SMCs) for sophisticated and institutional investors. Its SMC business currently includes assets managed on behalf of other investment advisers rather than retail individuals.

The firm follows an event-driven, value-oriented approach centered on merger arbitrage, special situations, and undervalued securities with catalysts, and it invests across equities, debt, options and related instruments. Twin employs derivatives (including forwards, swaps and options), may use leverage and short positions, and applies internally generated research and quantitative expected-return analysis with position sizing and stop-loss techniques; the Opportunities Fund is permitted higher concentration and leverage than the firm’s other accounts.

Compared with many peers, Twin’s practice of using derivatives in separately managed accounts and its role advising assets of other investment advisers are relatively uncommon characteristics that affect how opportunities and risks are allocated across clients. The firm operates with centralized, discretionary decision-making and relies on prime custody/prime-brokerage arrangements for its private funds, creating operational and key-person considerations that prospective investors should evaluate.