1. Argent Classic Convertible Arbitrage
Portfolio manager Bobby Richardson achieved returns of 3.5% for class-C shares of the Argent Classic Convertible Arbitrage Fund LP in the first quarter of 2003. Magnified by leverage, class-A Shares of the same fund returned 12.5%. And, class-B shares, levered up six times, gained 24.1% over the same stretch.
The fund saw its biggest gains in March with the help of gamma trading that exploited a spike in volatility brought on by investor mood swings over the war in Iraq. Meanwhile, a combination of falling equity prices and improving credit qualities in below-investment-grade names put