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HMEZX vs. ARBFX
Performance
Return for Risk
Drawdowns
Volatility
Dividends

HMEZX vs. ARBFX

Last updated Jun 23, 2026

HMEZX (NexPoint Merger Arbitrage Fund) and ARBFX (The Arbitrage Fund) are both Event Driven funds. Over the past 10 years, HMEZX returned 5.90%/yr vs 3.24%/yr for ARBFX. At a 0.39 correlation, their price movements are largely independent. HMEZX charges 1.50%/yr vs 1.43%/yr for ARBFX.

Performance

HMEZX vs. ARBFX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in NexPoint Merger Arbitrage Fund (HMEZX) and The Arbitrage Fund (ARBFX). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, HMEZX achieves a 1.63% return, which is significantly higher than ARBFX's 1.12% return. Over the past 10 years, HMEZX has outperformed ARBFX with an annualized return of 5.90%, while ARBFX has yielded a comparatively lower 3.24% annualized return.

HMEZX

1D
0.10%
1M
-0.05%
YTD
1.63%
6M
1.63%
1Y
5.28%
3Y*
6.76%
5Y*
4.87%
10Y*
5.90%

ARBFX

1D
0.15%
1M
0.07%
YTD
1.12%
6M
1.19%
1Y
5.93%
3Y*
6.36%
5Y*
2.96%
10Y*
3.24%
*Multi-year figures are annualized to reflect compound growth (CAGR)

HMEZX vs. ARBFX - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
HMEZX
NexPoint Merger Arbitrage Fund		1.63%6.30%7.42%4.10%2.70%5.37%8.46%8.10%5.92%5.48%
ARBFX
The Arbitrage Fund		1.12%8.01%2.61%5.94%-1.02%0.85%5.42%3.57%2.12%2.59%

Correlation

The correlation between HMEZX and ARBFX is 0.44, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.44

Correlation (3Y)
Calculated over the trailing 3-year period

0.43

Correlation (5Y)
Calculated over the trailing 5-year period

0.45

Correlation (10Y)
Calculated over the trailing 10-year period

0.39

Correlation (All Time)
Calculated using the full available price history since Jan 4, 2016

0.39

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

NexPoint Merger Arbitrage Fund

The Arbitrage Fund

Often compared with HMEZX:
HMEZX vs. BIMBXHMEZX vs. MARBHMEZX vs. VARBXHMEZX vs. VOOHMEZX vs. AVUVHMEZX vs. VBRHMEZX vs. ARB
Often compared with ARBFX:
ARBFX vs. MERIXARBFX vs. VEQT.TOARBFX vs. SPYARBFX vs. GDLARBFX vs. MERFXARBFX vs. EVDAXARBFX vs. BILPX

Return for Risk

HMEZX vs. ARBFX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
HMEZX
HMEZX Risk / Return Rank: 9999
Overall Rank
HMEZX Sharpe Ratio Rank: 9999
Sharpe Ratio Rank
HMEZX Sortino Ratio Rank: 9898
Sortino Ratio Rank
HMEZX Omega Ratio Rank: 9898
Omega Ratio Rank
HMEZX Calmar Ratio Rank: 9999
Calmar Ratio Rank
HMEZX Martin Ratio Rank: 9999
Martin Ratio Rank
ARBFX
ARBFX Risk / Return Rank: 9797
Overall Rank
ARBFX Sharpe Ratio Rank: 9696
Sharpe Ratio Rank
ARBFX Sortino Ratio Rank: 9797
Sortino Ratio Rank
ARBFX Omega Ratio Rank: 9595
Omega Ratio Rank
ARBFX Calmar Ratio Rank: 9797
Calmar Ratio Rank
ARBFX Martin Ratio Rank: 9898
Martin Ratio Rank
The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

HMEZX vs. ARBFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for NexPoint Merger Arbitrage Fund (HMEZX) and The Arbitrage Fund (ARBFX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

HMEZXARBFXDifference
Sharpe ratioReturn per unit of total volatility
4.18
3.20

+0.98

Sortino ratioReturn per unit of downside risk
7.23
5.55

+1.67

Omega ratioGain probability vs. loss probability

2.05

1.74

+0.30

Calmar ratioReturn relative to maximum drawdown

9.66

6.74

+2.92

Martin ratioReturn relative to average drawdown

52.13

29.71

+22.42

HMEZX vs. ARBFX - Sharpe Ratio Comparison

The current HMEZX Sharpe Ratio is 4.18, which is higher than the ARBFX Sharpe Ratio of 3.20. The chart below compares the historical Sharpe Ratios of HMEZX and ARBFX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

HMEZX vs. ARBFX - Drawdown Comparison

The maximum HMEZX drawdown since its inception was -6.86%, smaller than the maximum ARBFX drawdown of -38.01%. Use the drawdown chart below to compare losses from any high point for HMEZX and ARBFX.

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Drawdown Indicators

HMEZXARBFXDifference

Max Drawdown

Largest peak-to-trough decline

-6.86%

-38.01%

+31.15%

Max Drawdown (1Y)

Largest decline over 1 year

-0.55%

-0.88%

+0.33%

Max Drawdown (3Y)

Largest decline over 3 years

-1.06%

-2.26%

+1.20%

Max Drawdown (5Y)

Largest decline over 5 years

-1.94%

-6.87%

+4.93%

Max Drawdown (10Y)

Largest decline over 10 years

-6.86%

-11.90%

+5.04%

Current Drawdown

Current decline from peak

-0.19%

-0.07%

-0.12%

Average Drawdown

Average peak-to-trough decline

-0.37%

-2.36%

+1.99%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.10%

0.20%

-0.10%

Volatility

HMEZX vs. ARBFX - Volatility Comparison

The current volatility for NexPoint Merger Arbitrage Fund (HMEZX) is 0.40%, while The Arbitrage Fund (ARBFX) has a volatility of 0.46%. This indicates that HMEZX experiences smaller price fluctuations and is considered to be less risky than ARBFX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

HMEZXARBFXDifference

Volatility (1M)

Calculated over the trailing 1-month period

0.40%

0.46%

-0.06%

Volatility (6M)

Calculated over the trailing 6-month period

0.90%

1.14%

-0.24%

Volatility (1Y)

Calculated over the trailing 1-year period

1.27%

1.86%

-0.59%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

1.66%

3.64%

-1.98%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

3.79%

4.42%

-0.63%

HMEZX vs. ARBFX - Expense Ratio Comparison

HMEZX has a 1.50% expense ratio, which is higher than ARBFX's 1.43% expense ratio.

Dividends

HMEZX vs. ARBFX - Dividend Comparison

HMEZX's dividend yield for the trailing twelve months is around 5.08%, more than ARBFX's 3.55% yield.

PositionTTM20252024202320222021202020192018201720162015
ARBFX
The Arbitrage Fund		3.55%3.59%0.94%1.92%3.67%0.53%6.94%2.12%1.71%3.55%0.96%2.36%
HMEZX
NexPoint Merger Arbitrage Fund		5.08%5.04%6.36%5.07%5.11%3.63%5.83%0.33%19.16%6.88%0.02%0.00%

Frequently Asked Questions

HMEZX and ARBFX have a correlation of 0.44, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

ARBFX has higher volatility (0.46%) compared to HMEZX (0.40%). In terms of maximum drawdown, HMEZX dropped -6.86% vs ARBFX's -38.01%.

HMEZX currently has the higher Sharpe Ratio (4.18 vs 3.20), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.

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