One of the best-performing funds this year is GAM Arbitrage,
managed by New York-based John Angelo of Angelo, Gordon &
The fund is now up 5.29% year-to-date. Much of this good
performance came from prices in the distressed sector, which
accounted for 79% of assets continuing in January on the
uptrend that began in November and December, having rebounded
from October lows.
Risk arb was also profitable in January, mainly due to the
portfolio's holding of German speciality chemical company
Degussa AG- whose agreement to be acquired by RAG was stopped
by the German courts in December.
Angelo ratcheted up the distressed exposure in the portfolio