As another example (such as merger arbitrage), a hedge fund manager can buy the shares of a target company (or all target companies) if they are bidden on, and short the shares of the potential...

As another example (such as merger arbitrage), a hedge fund manager can buy the shares of a target company (or all target companies) if they are bidden on, and short the shares of the potential acquirer. Thus, according to this strategy a portfolio manager has more flexibility in using his/her own skills into producing such superior (risk-adjusted) returns.