New York-based Water Island Capital on March 15 is reopening its $2.95 billion Arbitrage Fund, which has been closed to new investors since July 19, 2010, according to a Securities & Exchange Commission filing.

Founder John Orrico and portfolio managers Todd Munn and Roger Foltynowicz manage the fund, which sports a 153 basis point expense ratio. Jonathan Schonberg, director of sales and marketing at Water Island, was not immediately available to comment on the fund reopening to new investors.

The fund bets on companies (both domestic and foreign) that are involved in publicly announced mergers, takeovers, tender offers, leveraged buyouts, spin-offs, liquidations and other corporate reorganizations.

Orrico formed Water Island Capital in 2000. The firm also manages the Arbitrage Event-Driven mutual fund, hedge funds and managed accounts.

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