Pentwater’s Hedge Funds Soar 21% on Billion-Dollar US Steel Bet

Pentwater Capital Management’s hedge funds that wager on corporate events extended gains in June to deliver some of their best-ever six-month returns, helped by a mega bet on United States Steel Corp.’s tie-up with Nippon Steel Corp.

Both Pentwater Event and Merger Arbitrage funds advanced more than 7% in June, bolstering returns for the first half to about 21%, according to people with knowledge of the matter. Positions including in US Steel, Avis Budget Group Inc. and government-backed Fannie Mae and Freddie Mac added to the gains, the people said, asking not to be identified because the details are private.