Core Insights - The company reported a strong performance in its merger arbitrage strategy, achieving a return of +5.5% before expenses in Q2 2025 and +9.4% for the first half of the year, marking the best first-half performance in over 25 years [1] - The company anticipates vibrant M&A activity for the remainder of the year [1] - Assets Under Management (AUM) increased to $1.34 billion as of June 30, 2025, up from $1.27 billion at March 31, 2025 [1][3][8] - The book value per share rose to $43.30 at the end of the quarter, compared to $42.51 at the end of Q1 2025 [1][3] Financial Performance - Total revenues for Q2 2025 were $2.2 million, down from $2.6 million in Q2 2024 [4][32] - The company experienced an operating loss before management fees of $5.2 million in Q2 2025, compared to a loss of $3.2 million in Q2 2024 [5][33] - Net investment and other non-operating income surged to $32.9 million in Q2 2025, compared to $7.3 million in Q2 2024, driven by merger arbitrage investments [6][33] - Net income for Q2 2025 was $18.6 million, significantly higher than $3.0 million in Q2 2024, with net income per share increasing to $0.88 from $0.14 [2][32] M&A Activity and Outlook - Global M&A activity exceeded $1 trillion in Q2 2025, reflecting a 3% increase from Q1 2025 and a 33% increase year-over-year [14] - The company expects ongoing M&A activity to be supported by a more favorable antitrust environment and pent-up demand from acquirers [15] - Recent regulatory changes in the U.S. and abroad are anticipated to create a more favorable environment for merger arbitrage investing [16] Shareholder Actions - The Board authorized the repurchase of up to an additional 150,000 shares [1] - The company repurchased 21,241 Class A shares for $0.8 million during Q2 2025, with a total of 60,259 shares repurchased for $2.2 million in the first half of the year [22][23] - A semi-annual dividend of $0.10 per share was declared and paid to shareholders [22]