Convertible Arbitrage portfolios hold long positions in convertible securities which are hedged with short positions in common stock, covered call options, and the tactical use of additional hedging instruments. Two portfolio options are offered. Portfolios are offered as separately managed accounts and through commingled vehicles.
Hedged Convertible Opportunity Strategy has a return objective of 500-700 basis points over Treasury Bills, with targeted risk of a 5-7% standard deviation and limited exposure to systematic risk factors.
Convertible Income Strategy has a return objective of 300-400 basis points over Treasury Bills, with targeted risk of a 3-4% standard deviation.