$10 billion bet on Hess deal pays off, hedge funds reap windfall profits

The arbitration court's ruling on July 18 marked the completion of Chevron's $53 billion acquisition of Hess Corp., with hedge fund managers including Citadel Advisors, Adage Capital Management, and HBK Investments reaping huge profits. According to Morgan Stanley's calculations, Hess is the most widely held stock in US merger arbitrage, with these arbitrageurs collectively holding around $10 billion worth of Hess shares as of the end of March. Despite ExxonMobil's challenges causing a 20-month delay in the transaction, companies specializing in merger arbitrage had previously bet on the acquisition's success.