Dave O’Donohue, Senior Vice President, Co-Portfolio Manager, explains how the two hedging strategies have different risk profiles and return expectations.

Eli Pars, Co-CIO, Head of Alternative Strategies and Co-Head of Convertible Strategies, Senior Co-PM, explains that convertible arbitrage has performed well in most equity market environments—and that the strategy has done its best in declining equity markets historically.

Eli Pars, Co-CIO, Head of Alternative Strategies and Co-Head of Convertible Strategies, Senior Co-PM, outlines the sources of income from convertible arbitrage, including: coupon income from the convertible bond, short interest credit, capital appreciation from convertibles and rebalancing/trading profits.

Eli Pars, Co-CIO, Head of Alternative Strategies and Co-Head of Convertible Strategies, Senior Co-PM, says the goal is to buy low and sell high, generate coupon income and trade around the portfolio.

Eli Pars, Co-CIO, Head of Alternative Strategies and Co-Head of Convertible Strategies, Senior Co-PM, discusses the extensive background of our convertible arbitrage strategy.

Co-Portfolio Managers David O’Donohue and Jason Hill discuss how convertible arbitrage strategies can potentially capitalize from increased market volatility through gamma trading.