Evaluating Predatory Trading by Activist Arbitrageurs: A Deep Dive into Closed-end Fund Trading Dynamics

Start year: 2024

Summary: This proposal investigates potential predatory trading practices within the Malaysian Closed-End Fund (CEF) industry. The study aims to elucidate how activist arbitrageurs exploit market inefficiencies, specifically the discrepancies between market prices and net asset values (NAVs), to manipulate fund valuations to their advantage. Through a comprehensive methodology that includes transaction data analysis, comparative international CEF studies, and advanced statistical techniques, the study seeks to identify patterns indicative of manipulation. The findings are expected to contribute to academic research, offer insights for industry stakeholders, and inform regulatory bodies, ultimately proposing actionable recommendations to enhance market transparency, integrity, and protect investor interests.