ABC Arbitrage (ABCA) Investor presentation summary

Business overview and strategy

• Operates as a quantitative asset manager focused on systematic arbitrage and risk mitigation, with 31 consecutive profitable years and average ROE above 15%.

• Employs over 115 specialists, with a strong emphasis on R&D, technology, and risk management.

• Utilizes proprietary trading systems across nearly 100 global markets, processing billions of data points annually.

• Core conviction is investing its own equity in strategies, maintaining independence from external constraints.

• Offers multi-strategy funds targeting uncorrelated, all-weather returns, with performance linked to volatility and market activity.

Market environment and performance drivers

• Volatility, M&A activity, corporate actions, and traded volumes are key drivers of profitability.

• 2023–2025 saw strong equity market returns, with S&P 500 up 86% over three years and Euro Stoxx 600 up 38%.

• VIX levels shifted from below to above long-term averages, with 2026 entering a high-volatility regime (VIX > 18).

• Persistent macroeconomic and geopolitical risks, including a global debt super-cycle and private credit vulnerabilities, are expected to sustain volatility.

Financial results and business review

• 2025 net revenues rose 16.5% to €59.7m, with net income at €25.1m and net margin around 42%.

• ROE for 2025 was 14.8%, continuing a 31-year streak of double-digit returns.

• External third-party (ETP) revenues were €1.7m, below historical targets, with ETP AuM down 33% YoY to €52m.

• HR costs increased due to market adaptation and R&D hiring, with bonuses closely tied to performance.

• Over 90% of average income derived from proprietary equity, with high correlation to volatility spikes.