Rumors of the demise of convertible-arbitrage performance earlier this year, have turned out to be greatly exaggerated. A dip in U.S. interest rates and waxing volatility was a boon to convertible arbitrage funds for the month of September.
Such a climate allowed convertible specialists like Argent to extend gains made earlier this year. Class-B shares of Argent Classic Convertible Arbitrage Fund jumped 12.6%, leaving year-to-date returns at 44.7%. The same forces were obviously at work in the offshore version with Class B-Shares of the Argent Classic Convertible Arbitrage Fund (Bermuda) picking up 10.1% for the month, leaving returns at