Takeovers - Ramsay Health Care

Recently a new buy signal was generated on RHC as a result of a take over announcement. This raises the question of what should be done in these circumstances.

We do have a rule in the Investment Plans that when an open position becomes the subject of a take over that position must be closed 20 days after the initial announcement. I’ve attached a link below to the Investment plan for viewing.



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We don’t have a rule for when a takeover announcement triggers a new Buy signal, so you might like to create one that suits your own risk profile. EG, if a new buy signal is generated as the result of a takeover, I will/will not take the signal. It wont be a common event, but it is one that ideally you should have a rule for.

In the example of the public portfolio, RHC was taken as the portfolio had a position available and it had the highest ranking of any opportunities that day. It will then be exited 20 days after the TO announcement date.

Thanks David , duly actioned!