In this discussion with Maurice Jackson of Proven & Probable, I discuss why arbitrage should be an essential part of an investment strategy, particularly in the junior resource sector.

Arbitrage opportunities often exist because markets are inefficient, especially in small, illiquid companies. Investors who follow corporate actions, mergers, rights offerings, and cross-market price differences can sometimes find lower-risk opportunities that larger institutions ignore. The key is discipline, patience, and a clear understanding of the underlying value.

Watch the full discussion below:

Key Takeaways

• Arbitrage can offer lower-risk opportunities when markets misprice corporate actions or related securities.
• Junior resource markets are often inefficient because many companies are small, illiquid, and ignored by institutions.
• Retail investors may have an advantage in situations too small for large funds to exploit.
• Investors must still understand the underlying asset, deal structure, jurisdiction, and execution risk.
• Arbitrage is not speculation without discipline; it requires careful math, patience, and attention to detail.