In most periods, SSI's Outright Convertible products will produce equity-like returns with bond-like risk.  Utilizing both quantitative and fundamental analysis to determine the best portfolio candidates, SSI’s portfolio team constructs a diversified portfolio of convertible bonds and convertible preferred stocks that have been evaluated on relative valuation and risk attributes.

Benefits of Outright Convertiblesinclude: income stream of a bond, relative safety of principal, growth potential of common stock and reduction of equity market risk. SSI’s Outright Convertible portfolios are opportunistic in that they are geared towards selecting convertibles that have low conversion premiums and investment value premiums, are “cheap” when compared to their theoretical value, have good call protection, and the underlying equity has strong fundamentals.

SSI has successfully managed outright convertibles using this investment process since 1975. In addition, SSI's expertise in market-neutral strategies and short selling has been honed by the firm's 38 years of experience in the alternative marketplace.

Outright Discretionary Convertibles:

• SSI’s Outright Discretionary Convertible Strategy seeks to produce excess returns above the BofA Merrill Lynch All Convertibles (VXA0) Index. Portfolios employing this strategy contain ~120 convertible bonds and/or preferreds. All credit ratings are considered. Historically, this strategy has captured 2/3 of the stock market appreciation with less risk.

Outright Investment Grade Convertibles:

• SSI’s Outright Investment Grade Convertible Strategy seeks to produce excess returns above the BofA Merrill Lynch Investment Grade Bonds (V0S1) Index. Portfolios employing this strategy contain ~70 investment grade convertible securities. Only candidates that have investment grade credit ratings are considered. Historically, this strategy has achieved higher returns than traditional fixed income strategies. Performance has minimal correlation to underlying capital markets.