Cowen Run

Cowen Run is a colloquial term referring to a specific trading strategy, primarily in the context of equity markets, that attempts to profit from anticipated or confirmed news related to potential mergers and acquisitions (M&A) involving the investment bank Cowen (formerly Cowen & Company, now part of TD Cowen). The strategy hinges on the idea that Cowen's involvement as an advisor or underwriter can signal a higher likelihood of a deal's successful completion or, conversely, its failure.

The term implies that traders are attempting to "run" ahead of public information, anticipating how the market will react to Cowen's engagement in a particular deal. It is not a standardized, officially recognized trading technique but rather a descriptive term used within certain trading circles. The strategy is inherently speculative and carries significant risk, as it depends on predicting market behavior and the accuracy of assumptions regarding the impact of Cowen's involvement. Factors such as the size and nature of the deal, the financial health of the companies involved, and overall market conditions all influence the outcome of such a strategy.