But with the increased use of auctions in sales to private-equity firms, this has become a much less likely explanation for superior performance.

ECONOMIST: Pick carefully

Gabelli trails Merger in long-term performance with an annualized 9.8% over five years, although Gabelli has clocked a superior 4.1% return in 2001, to Merger Fund's 2.3%.

FORBES: M&A for the Little Guy