Led by partners Hillel Meltz and Matthew MacIsaac, MMCAP Fund, Inc., utilizes asset allocation strategies, informed by market inefficiencies, as a way of generating superior risk-adjusted returns. MMCAP Fund’s team has a particular focus on special situations such as private placements and merger arbitrage, which present excellent investment opportunities. Market inefficiencies occur in a wide range of trading arenas and involve situations in which equities and other assets are not priced accurately within markets. This is often due to incomplete information or accepted analysis that does not reach an accurate conclusion about on-the-ground trends and conditions. Long/short investing is a way of capitalizing on market inefficiencies through a combination of traditional long investing for stocks that are expected to rise, and shorting strategies for stocks on the decline. Market risk can be effectively managed through evaluating the mix of short and long positions, and adjusting them to reflect current market trends. This approach is most effective during times of event-driven valuation shift, when prices are fluid and changing and seasoned market watchers make educated stock picks.