Cross-Border M&A activity highlights increasing popularity in large cap growth

As U.S. record level M&A heats up this summer, this activity has drawn the attention of international investors, especially China. Just recently, a Chinese state-owned technology firm offered an enormous $23 billion bid for a U.S. technology company in the Russell 1000 Growth index, a would-be record amount for any Chinese takeover of a U.S. firm. This bid along with numerous other large cap growth offers this year reflects a widening popularity in this sector. 

Chinese firms, along with other investors, are offering massive premiums to acquire these large cap growth companies, proving that this investment class has significant and compelling value. To make the most of this growing asset class, it must be included as part of a properly diversified investment strategy.