(Bloomberg) — BlackRock has started a hedge fund with a $200 million investment from New Zealand's sovereign-wealth fund that will seek to profit from bets on companies involved in takeovers.

The merger-arbitrage fund began trading this month and is run by former Harvard money manager Mark McKenna, who oversees the firm's global event-driven strategy aimed at benefiting from takeovers, divestitures and management changes, according to a person with knowledge of the matter.

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