Nathan Houser, Principal Portfolio Management & Research, Absolute Investment Advisers discusses why advisors should consider convertible arbitrage as a fixed income solution.
The Absolute Convertible Arbitrage Fund aims to provide strong long-term absolute returns, with minimized volatility compared to the broader market indices. The open-ended mutual fund is managed by convertible securities specialist Mohican Financial Management, and seeks to capitalize on pricing differences in a company’s convertible bonds and its common stock. The fund can be leveraged as a part of an alternative or fixed income allocation and is designed to provide moderate returns with relatively low volatility.
Absolute Investment Advisers was founded in 2004 to help provide investors access to unique and independent managers and to ultimately build better risk-adjusted portfolios. This shop focuses on delivering active strategies in a transparent and liquid structure.
To learn, register and watch Absolute Investment Advisor’s webcast: Convertible Arbitrage: A Unique Credit Strategy & Different Source of Return.
Are you looking for something different in fixed-income? With rates and spreads so low, are you struggling with the role of traditional fixed-income? Convertible Arbitrage may be a solution you have not yet considered. Among the topics to be discussed:
- The challenges in fixed income and the sacrifices investors are making to find a solution.
- Convertible Arbitrage: What is it? How does it work? Where do the returns come from?
- The credit component of convertible arbitrage.
- A low beta / low volatility fixed-income-like return stream that may provide ballast versus other parts of a portfolio.