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...They range from replicating what many traditional bond funds already do in a systematic, emotionless fashion, to higher-octane hedge fund-like strategies such as “statistical arbitrage” — essentially eking...
...Steven Kaplan, a private equity expert at the University of Chicago, said this creates contradictions that are increasingly apparent among large, diversified alternative investment firms....
...Crocs will use the money to help fund a $350m stock buyback intended to stabilise the share price....
...This was followed by six funds each tracking global macro, multi-strategy, and option strategy. Convertible and fixed income arbitrage and event driven funds were each represented by five funds....
...● Highbridge Capital Management has introduced a sterling-hedged share class for its Ucits III diversified commodities fund, which debuted last March....
...Building on core expertise in strategies such as managed futures, convertible arbitrage, and market neutral products, AQR added diversified arbitrage and managed futures mutual funds, as well as non-traditional...
...● Ferox Capital plans to launch a Ucits-compliant convertible hedge fund, the Salar Convertible Absolute Return Fund....
...Other relative-value strategies such as convertible arbitrage – betting on pricing inefficiencies within capital structures – have also fared particularly well....
...For its part, LIM Advisors seeks to generate absolute returns through non-directional strategies such as convertible bond arbitrage, merger arbitrage, and relative value trades – for example between Hong...
...The Relative Value Fixed Income Convertible Arbitrage Index, the most comparable measure to the strategy employed by Mr Meriwether’s fund, was among the most disastrous strategies last year, down almost...
...For example convertible arbitrage funds, the best performer, have yielded an average 24 per cent return this year, according to EDHEC, the French business school....
...China has recently moved to increase the international profile of its own non-convertible currency, signing six bilateral swap agreements totalling Rmb650bn ($95bn) and announcing a trade settlement pilot...
...The Barclays Convertible Arbitrage Index shows September’s fund performance was the worst this year – down some 9.54 per cent....
...Other hedge fund investors say that between 10 per cent and 50 per cent of their managers are limiting withdrawals, with strategies such as credit and convertible bond arbitrage particularly hard hit....
...Somewhat surprisingly, the top-performing strategy in January was convertible bond arbitrage – which plays the difference in the price between the stock and debt issued by a company by shorting one and going...
...Years ago, Citadel was a straightforward operation that specialised in convertible bond arbitrage, a strategy that involves buying convertible bonds and selling the equities of a given company....
...The investment which funds including Citadel, DE Shaw and Och-Ziff provided to Chinese companies, many of which were property developers, was often in the form of convertible bonds....
...In convertible bond arbitrage, traders sell short equities to hedge the risk of their investment in the bonds. But Citadel is hardly the only hedge fund being hurt by the new rules for trading....
...Or to lose 30 per cent in the last 10 months as the average convertible arbitrage fund has done. Some dedicated short funds have done well, as have some of the so-called “market neutral” funds....
...The main fund of Platinum Grove, set up by former LTCM partner and Nobel prizewinner Myron Scholes – of Black-Scholes option-pricing formula fame – lost 11 per cent, as did the main fund of London Diversified...
...Argent Classic Convertible Arbitrage Fund L.P. v....
...Long-short funds heavy in Asian equities have also gained. And fund managers skilled in arbitrage strategies involving convertible securities and distressed debt have also weathered the storm....
...Convertible arbitrage funds investing in what are hybrid bonds paying out a fixed income with an equity option attached are likely to flourish....
...He also diversified further away from the core convertible and credit arbitrage strategy. The latest recruits add event-driven strategies, which look to profit from deals and other corporate events....
...AQR’s $35bn in assets includes funds managed by CNH Partners, a merger arbitrage and convertible arbitrage affiliate of AQR. Additional reporting by Deborah Brewster in New York...
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