The management team, dedicated to convertible securities portfolios, began with three experienced individuals, now comprises five professionals, and has had no attrition.
The fund is 100% dedicated to convertible arbitrage with a portfolio management team that combines thirty-five years of experience in trading US convertible securities. We employ a versatile strategy that includes in-the-money/synthetic put trades, at/near-the-money trades, and cash-flow-oriented mandatory trades. We focus on the small and mid cap space of the convertibles market. We emphasize convertible coupon bonds (always more than 50% of the portfolio, usually more than 80%) to maintain positive carry and yield. We continually assess portfolio mix to optimise risk/reward, and use options-based models to invest in under-priced securities. Profits are generated from identifying undervalued securities, positive carry, credit improvement, delta/volatility trading and relative premium expansion.
