If all that were needed to gather assets in the hedge fund world are consistent returns, low volatility, capital preservation and lack of correlation, the Boston & Alexander Number One global convertible arbitrage fund would by rights be running a lot of money by now.
The fund, managed by Rory Passey since January 2004, has produced an annualised return of 6.36% since inception – giving a total return to day-one investors of over 60% against a MSCI global equity return of just 3% over the same period.
Over three and five-year time-frames, the performance is even more robust – annualising at 7% over the past three years and almost 8% over the past five years, despite the calamity that struck convertible and other equity/debt arbitrage funds in the autumn of 2008.
Remarkably, the fund has not had a down year since inception – despite the CB arb maelstrom of...