HEDGED-MARKET NEUTRAL STRATEGIES
Convertible Arbitrage
These strategies utilize convertible arbitrage by taking long positions in convertible bonds and short positions in the underlying equities to capture relative value opportunities.
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Role in Portfolios
Convertible arbitrage strategies can provide an alternative source of return within fixed income and alternative allocations while maintaining a disciplined risk profile. Convert arb can add resiliency to portfolio construction - providing relatively steady, low-volatility and historically non-correlation returns, regardless of market direction. Convert arb seeks to capitalize on market volatility - a distinct advantage of this investment approach.